ETF Special Distributions
Hello,
I'm a newbie at investing. Just opened a brokerage account for RRSP in March last year and bought 500 shares of the ETF DXM.
I'm reconciling my year end distributions, and am trying to understand this 'special distribution' notice:
http://www.firstasset.com/media/release.php?id=3243
Specifically this:
"With respect to the portion of each Special Distribution paid by the issuance of units, as is standard in the industry, immediately after the issuance of the units, the issued and outstanding capital of the First Asset ETF will be consolidated such that the number of issued and outstanding units of the First Asset ETF does not change."
So does this mean that I'll see the cash portion + regular portion as a dividend paid to me, but the 'unit portion' is built back into the fund such that the number of the units I have don't change? Because I still own 500 units, so its been re-invested back into the fund?
Also if I held this in a regular investing account and they distributed x in cash and y in units, what is reported for tax purposes? Just the x I was paid in cash or x+y?
If this has been covered somewhere before, just point me to the link.
thanks!
I'm a newbie at investing. Just opened a brokerage account for RRSP in March last year and bought 500 shares of the ETF DXM.
I'm reconciling my year end distributions, and am trying to understand this 'special distribution' notice:
http://www.firstasset.com/media/release.php?id=3243
Specifically this:
"With respect to the portion of each Special Distribution paid by the issuance of units, as is standard in the industry, immediately after the issuance of the units, the issued and outstanding capital of the First Asset ETF will be consolidated such that the number of issued and outstanding units of the First Asset ETF does not change."
So does this mean that I'll see the cash portion + regular portion as a dividend paid to me, but the 'unit portion' is built back into the fund such that the number of the units I have don't change? Because I still own 500 units, so its been re-invested back into the fund?
Also if I held this in a regular investing account and they distributed x in cash and y in units, what is reported for tax purposes? Just the x I was paid in cash or x+y?
If this has been covered somewhere before, just point me to the link.
thanks!