Purpose Core Dividend (PDF:CA)
The Purpose Core Dividend Fund is a diversified portfolio comprising the highest quality North American companies with the capacity to pay and grow their dividends. This fund is guided by a fundamental rules-based strategy that provides investors with attractive tax-efficient monthly distributions and the potential for long-term growth. Invests in a broadly diversified portfolio by industry and company, which is equally weighted by stock (~2.5% per issuer) and maximum industry exposure of 20%.
The Fund consists of an equally weighted portfolio comprising approximately 40 high quality North American dividend-paying equity securities. Eligibility will be based on a fundamental rules-based portfolio selection strategy that intends to create value and reduce risk over the investment period.
IFM Investment Tip:
This is a new ETF that utilizes an Equal-Weight investment strategy - which we really like. Historically, an Equal-Weight investment strategy outperforms the more common Market-Capitalization strategies. This ETF invested an equal $ amount in 40 North American companies, but it does not invest equal-weight in each sector - Banking, Industrials, Energy, etc.
In addition, Return of Capital (ROC) payments can distort the ETF's distribution yield as they did in 2014, when ROC payments equalled 50% of distributions.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- None - Actively Managed
- Asset Category
- Growth Investments
- Average Duration
- Average Maturity
- Cdn$ (US$ exposure is hedged back to Cdn$s)
- Date Established
- September 3, 2013
- Annual Management Fee
- 0.55% plus 0.12% in Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.10% (2016)
- Management Expense Ratio (MER)
- 0.77% (2016)
- Additional Performance Fee(s)
- Class A Units charge investors an additional 1.00% Service/Trailer Fee. (Actual expense ratio was 1.97% for 2015)
- Yes - In 2016, the ETF had a yield equal to 3.72% net of Return of Capital (ROC) payments. NOTE: In 2014, ROC payments made up 50% of distributions.
- Distribution Dates
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes Visit ETF Website for details
- Tax Efficient
- Yes - Dividends and capital gains flow to the unit holder
- Rebalancing Frequency
- Portfolio Turnover Ratio
- Was 66.40% in 2016, 84.00% in 2015, 64.59% in 2014, 25.91% for the last 3 months of 2013 - annualized this equals a PTR of 103.64%
- Simplified Prospectus
- Last Updated