Do the index exchange-traded funds (ETFs) offer DRIP’s?

Question:

Do the index ETF’s offer DRIPs? It seems to me that this would be an ideal program for a “DIY” investor.

As a Canadian, we could augment your program (which doesn’t need augmentation!) with DRIP’s set up directly with certain sectors; e.g.  BCE, IPL, TD, FTS, SU.

This is a classic “do nothing” program that also takes advantage of compounding, company discounts on share purchases and no commission fees.

Your comments would be appreciated.

Monday Morning Millionaire Program Answer:

Some ETFs offer DRIPs and some don’t. You can choose a DRIP plan for any stock or ETF held in an account with Fidelity Investments and Fidelity will buy shares and allocate them to DRIP shareholders (without a commission). Most other larger brokerage firms will do the same.

The Monday Morning Millionaire Program recommends rebalancing to your personal asset allocation whenever that ratio changes by 10% or so. Any excess cash, be it from dividends or a drop in ETFs value should be used to rebalance to your asset allocation. There is no need to pay attention to DRIPs.

 

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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