Dividend Reinvestment Plan (DRIP)

Benefits of Reinvesting Dividends

A dividend reinvestment plan (DRIP) is an investment strategy whereby Unitholders who participate in the plan reinvest their cash dividends and buy additional Units of the issuer instead of receiving a cash payment. DRIPs are intended for long-term investors.

In general, DRIPs may be a suitable investment for investors looking to help build their units of a fund over time in a more cost effective manner.

  • Low Transaction Costs - DRIPs facilitate the purchase of Units at regular intervals, for little or no commission.
  • Smaller Investment Amounts - DRIPs enable purchases of Units in smaller amounts, which would not be possible or cost effective through other means.
  • Benefits of Dollar Cost Averaging - By investing on a regular basis DRIPs allow investors to potentially smooth out the price they pay for investments. The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high.

Distribution Reinvestment Plan (DRIP)

Effective February 2009, under the Distribution Reinvestment Plan (“DRIP”), any distributions made by a Claymore ETF are used to purchase additional units of the Claymore ETF making the distribution.

The DRIP Important Information:

  • There are no commissions or service charges related to the DRIP.
  • A Unitholder will receive any Units purchased under the DRIP Plan on or about the 6th business day following the applicable distribution date.
  • Units will be credited to each Unitholder’s account in which the Claymore ETF Units are held.
  • No fractional Units will be issued under the DRIP. Any remaining uninvested funds in lieu of fractional Units will be credited to Unitholder’s accounts via their investment advisor, discount broker, investment counselor, or other investment dealer where they hold the Units (“CDS Participant”).
  • Participation in the DRIP is restricted to Unitholders who are residents of Canada for purposes of the Income Tax Act (Canada).
  • The reinvestment of the distributions will not relieve Unitholders of any income tax applicable to such distributions.

There is no guarantee that this strategy will be successful.

DRIP REINVESTMENT PLAN (DRIP)

ETF PRODUCTS BY ASSET CLASS




Commissions, trailing commissions, management fees and expenses all may be associated with fund investments. Please read the prospectus before investing. The indicated rate of return is the historical annual compounded total return including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Funds are not guaranteed, their values change frequently and past performance may not be repeated.