One of the valuable features of Claymore Canada's ETFs is that the company offers investors three automatic programs, all on a voluntary basis without commissions or fees:
- PACC - Pre-Authorized Chequing Contributions - owners of ETFs can make regular monthly, quarterly or annual purchases of additional units
- DRIP - Dividend Re-Investment Plan - ETF distributions received are used to buy more units
- SWP - Systematic Withdrawal Plan - ETF units held may be sold on a regular monthly, quarterly or annual schedule
However, there is a catch. The broker at which the ETF units are held must cooperate with Claymore to make it happen. Not all brokers do and some only participate in one or two of the programs. The PACC is the one with the most brokers missing. Unfortunately, it is also the case that the major bank brokers are least on board - none supports all three programs. To check your own broker, here is the
list posted by Claymore of which broker supports what.
Thanks to
Larry MacDonald at Canadian Business for asking the question that prompted me to look into this. You learn something every day.
Stumble It!
