CAB: Claymore Tax-Advantaged Canadian Bond ETF

5540 Views 5 Replies 5 Participants Last post by leslie, Nov 25, 2009

cmackie

Discussion Starter · Nov 24, 2009

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

'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.

Save

1 - 1 of 6 Posts

mogul777

· #2 · Nov 24, 2009

cmackie said:
'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.

Only problem is you don't actual invest in bonds...

Save

1 - 1 of 6 Posts

This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.

Top Contributors this Month