The Harvest Distribution Reinvestment Program (DRIP) allows unitholders to easily benefit from compounding their distributions. Under the plan, distributions are reinvested to buy additional units of the same ETF fund as set out in Harvest DRIP Plan, without incurring additional trading charges.
A DRIP is considered to be a practical way to grow your investments as distributions stay in the market (rather than taking the distributions out as cash) and you save on trading fees.
Investors may opt into the DRIP by contacting their brokerage firm.
Are Harvest ETF’s eligible for DRIP?
Canadian residents can participate in the Harvest DRIP plan in the following ETF’s:
– Harvest Brand Leaders Plus Income ETF
– Harvest Healthcare Leaders Income ETF
– Harvest Tech Achievers Growth & Income ETF
– Harvest Energy Leaders Plus Income ETF
– Harvest US Equity Plus Income ETF
– Harvest Global REIT Leaders Income ETF
What is the tax treatment for DRIPs in Canada?
DRIPS reinvest distributions to purchase additional units. Because there is a cash dividend, although reinvested, it is considered as income and therefore taxable, unless held in a tax-sheltered investment account. Please consult your tax advisor for additional advice.
How are units bought or sold?
Units purchased or sold under the DRIP plan are purchased through the Toronto Stock Exchange (TSX) by the DRIP Plan Agent. The price of the units purchased or redeemed is based on the average price of all the units in respect to a given distribution payment date. The units will be allocated pro rata based on their respective entitlements to the distributions used to purchase units.
Read our blog post on Harvesting the Power of Reinvested Dividends
Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made with guidance from a qualified professional. There is no guarantee that this strategy will be successful.