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Distribution reinvestment plan

Reinvest your cash distributions commission-free


Vanguard's distribution reinvestment plan (DRIP) will reinvest Vanguard ETF® cash distributions without charging a commission. Under the plan, distributions are reinvested to buy more units of the same ETF. You pay no commissions and fund distributions stay in the market (unlike cash).

How to enrol

To enrol, simply submit the required DRIP form to your dealer back office before the ETF’s distribution record date. Once enrolled, distributions will automatically be reinvested into units purchased on the open market in the five business days following the distribution payment date. Your clients will receive new units on or about the sixth business day after the applicable distribution date.


Why participate?

By participating in the DRIP, your clients can keep more of their investment working for them, without having to remember to reinvest distributions and without incurring commissions.


Other considerations

The price of the new units will be the average price of all units purchased under the plan excluding commissions, fees and transaction costs incurred by the plan agent. Fractional units won’t be purchased, but rather paid back into your client’s account as cash. Also, your client must be a resident of Canada for Income Tax Act (Canada) purposes to participate.


Read the plan document.


The content on this webpage is to be read in conjunction with the DRIP Plan materials available via hypertext link on this webpage. The effective date of the plan is November 8, 2012. All Vanguard ETF cash distributions are eligible for the DRIP. All cash distributions paid by the Vanguard ETF must be reinvested if enrolled in the DRIP. Investors are liable for any taxes that may be payable as a result of cash distributions that are reinvested in the Vanguard ETF under the DRIP. Investors should consult their own legal advisors and/or tax advisors for any advice tailored to their own needs or circumstances concerning the various implications of participation in the DRIP.

Commissions, management fees, and expenses all may be associated with investment funds. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus; please read it before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. Vanguard funds are managed by Vanguard Investments Canada Inc. and are available across Canada through registered dealers.

This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial and/or tax advisor for financial and/or tax information applicable to their specific situation.

All investment funds, including those that seek to track an index are subject to risk, including the possible loss of principal. Diversification does not ensure a profit or protect against a loss in a declining market. While the Vanguard ETFs are designed to be as diversified as the original indices they seek to track and can provide greater diversification than an individual investor may achieve independently, any given ETF may not be a diversified investment.

All monetary figures are expressed in Canadian dollars unless otherwise noted.