As of February, Claymore Investments Inc. will be offering a dividend-reinvestment plan (DRiP) for its family of exchange-traded funds (ETFs) on the Toronto Stock Exchange. Under its Automatic Dividend Reinvestment Plan (Auto DRIP), dividends will be automatically reinvested without trading commissions. As well, unitholders will be able to acquire additional units without trading fees.
This is a breakthrough in making ETFs more convenient. Until now, index mutual funds were the only way for index investors to reinvest dividends without charge. Now they can DRiP with Claymore ETFs, which have much lower annual expense ratios.
Claymorewill also be offering commission-free, dollar-cost averaging through its Pre-Authorized Cash Contribution Plan (PACC Plan), as well as commission-free, systematic withdrawals through its Systematic Withdrawal Plan (SWP). Those features will be quite convenient too.