'expected' to be treated as capital gains... As long as that happens then I see it as a creative way at getting exposure to a high quality bond index with more tax-efficient distributions.The ETF is designed to track the DLUX Capped Bond Index, a high-quality subset of the DEX Universe Bond Index, and to make distributions at least quarterly in the form of tax-advantaged capital gains.
This will be accomplished by investing the ETF in a portfolio of Canadian equity securities. The equities will be sold via a forward agreement to a counter-party, in return for a purchase price that provides exposure to the performance of the DLUX Capped Bond Index. As a result of these transactions, the ETF distributions are expected to be treated as capital gains. -Morningstar