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Investing

Going Against the Grain

3 reasons why the Evermore Retirement ETFs are moving to annual distributions

The Evermore Team

The Evermore Team

We all deserve to feel confident about our finances. Evermore is here to make sensible investing accessible to everybody.

One feature of the Evermore Retirement ETFs are distributions paid to unitholders. It’s popular to pay distributions on a quarterly basis, which we did last year, but starting in 2023 the Evermore Retirement ETFs will pay distributions on an annual basis. Why is this happening?

There are three reasons:

  1. To Minimize Cash Drag. When the underlying securities (those securities held by the Evermore Retirement ETFs) pay out interest or dividends, we will reinvest those monies in the underlying securities themselves (buy more underlying securities) rather than paying the cash out to unitholders. This minimizes cash drag and allows for further compounding, which should mean a bigger nest egg at retirement.
  2. To Save Costs. The Evermore Retirement ETFs incur costs associated with transfer fees and publications each time they make a distribution. So, instead of making the distribution quarterly, by making it annually, the Evermore Retirement ETFs avoid these costs and pass those savings to unitholders.
  3. For Convenience. The annual distribution is expected in January – just in time for RRSP season. This will make it easier to reinvest those distributions into more Evermore Retirement ETF units since unitholders would only have to reinvest distributions once per year. This also saves you money on brokerage transaction fees.

Remember, investing for retirement is a marathon and not a sprint. Every dollar counts in the long term and this simple switch in distribution timing will help that dollar go further.

Forward-looking information

This article contains forward-looking statements with respect to future growth of the Evermore Retirement ETFs and the amount of nest egg available at retirement. Example of Forward-looking statements include words such as “will” “expected” and “should”. Forward-looking statements involve risks and uncertainties that could cause the actual outcome to differ materially. Material factors that could cause the actual outcome to differ from the project outcome are, but are not limited to, the actual amounts of distributions received by the Evermore Retirement ETFs, portfolio transactions, the market conditions, currency hedging transactions, and subscription and redemption activity.

Commissions, trading fees, management fees and expenses all may be associated with an investment in exchange traded funds (ETFs). Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.

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Going Against the Grain

Going Against the Grain

3 reasons why the Evermore Retirement ETFs are moving to annual distributions