Claymore ETFs’ PACC Plan lets investors set aside money on a regular basis, helping to build Units throughout the entire year while getting the potential benefits of dollar cost averaging.
| Dollar Cost Averaging | By investing on a regular basis, investors may be able to smooth out the price they pay for their investments. More shares are purchased when prices are low, and fewer shares are bought when prices are high. |
| Early Compounding of Investments | May be well suited for Registered Retirement Savings Plan (RRSP) investors, the PACC Plan makes it easier to put away $100 or $1000 monthly, rather than contribute a lump sum in February each year for example. The power of early compounding may help the overall growth of your investments for the long term. |
| Convenience | no more worrying about missing the RRSP deadline or scrambling for a lump sum. |
| Small Investment Amounts | In the past, ETFs have not been easy investments for smaller investors given the impact of trading commissions. The Claymore PACC Plan provides small investors the opportunity to help eliminate the trading costs associated with making small contributions and investments. |
| A wide range of Claymore ETFs available for investment | Claymore ETFs cover a broad range of asset classes and investment strategies. |
Pre-Authorized Cash Contribution Plan (PACC)
Regular investing may be an effective way to build wealth. Under the Pre-Authorized Cash Contribution Plan (“PACC Plan”), existing Unitholders of Claymore ETFs may make regular monthly, quarterly or annual purchases of Units. The PACC Plan offers Unitholders the ability to dollar cost average into Claymore ETFs in a convenient, commission-free manner.
Important Information regarding the PACC Plan:
- There are no commissions or service charges related to the PACC Plan.
- The frequency of PACC payments can be monthly, quarterly or annually.
- Cash contributions are subject to a minimum of $50 for each class of units of a Claymore ETF.
- Unitholders should notify their investment advisor, discount broker, investment counselor, or other investment dealer where they hold the Units of their intent to participate in the PACC Plan.
- No fractional Units will be issued under the PACC Plan. Any remaining uninvested funds in lieu of fractional Units will be credited to Unitholders via their broker/dealer.
- Enrollment in the PACC Plan can be terminated or suspended without cost at any time.
How to Enroll into the PACC Plan
To enroll in the PACC Plan, you must be an existing Unitholder of the specific Claymore ETF in which you wish to invest (no minimum number of Units held). Unitholders can start a PACC plan by contacting their broker/dealer and providing notice of their intention to enroll in the Claymore PACC Plan. Once enrolled, participation in the PACC Plan will continue automatically unless terminated or suspended. To increase regular investments under the PACC Plan, Unitholders must contact their broker/dealer. Deadline for notices of enrollment and changes will vary by broker/dealer.
Terminating or Suspending Participation into the PACC Plan
Unitholders can terminate or suspend enrolment in the PACC Plan without cost at any time, by giving notice to their CDS Participant. Deadline for notice will vary by CDS Participant.
If you have any questions on PACC Plan, please feel free to contact us
Overview of Dollar Cost Averaging
A simple strategy that appeals to long-term investors, dollar cost averaging lets you take advantage of growth and fluctuations in the markets and take the guesswork out of investing. Simply put, dollar cost averaging is committing a fixed amount of money at regular intervals to an investment. The strategy forces you to buy more units of a security when the price is low and fewer units when the price is high. It allows investors to buy at a range of prices without the stress of trying to actively time the market. Investors may benefit by avoiding making large purchases at the peak of the market, obtaining an average purchase price between the market’s high and low.
| Date | Investment | Price | Units |
| January | $200 | $10.00 | 20 |
| February | $200 | $9.25 | 21 |
| March | $200 | $9.90 | 20 |
End of March:
Total Investment = $592.25 ($600-less excess cash)
Market Value = $603.90 (61 x $9.90)
There is no guarantee that this strategy will be successful.