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 tell your financial advisor, broker, dealer or other financial institution (CDS participant) before the ETF's distribution record date. Once you've enrolled, your distributions will automatically be reinvested into units purchased on the open market in the five business days following the distribution payment date. You'll receive your new units on or about the sixth business day after the applicable distribution date.

Why participate?

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

Other considerations

The price of your 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 account as cash. Also, you must be a resident of Canada for Income Tax Act (Canada) purposes to participate.

Read the Plan document.

Notes:

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 you enrol 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 investment advisors, 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.