Individual Investors

Distribution Reinvestment Plan | What, Why, How

A question many ETF investors have is whether to participate in a Distribution Reinvestment Plan (DRP).

What is a DRP and what do you need to do?

ETFs like many other investment options pay distributions. But why? Well, if the underlying companies that an ETF holds pay dividends, these are paid directly into the fund. The ETF collates all forms of income within the fund, including dividends, interest, capital gains and other amounts, and pays this out to investors as part of a regular distribution.

The timing of these distributions is outlined in the ETF’s product disclosure statement and generally ranges from monthly to annually.

ETF Securities' equity funds

With all of our equity funds, if income has been accrued within the fund, they will pay out a distribution on the 30th June 2021. Please note we are unable to provide forecasts of what distributions will be, but in the lead up to a distribution, we do provide estimates. You can see a history of a fund’s distribution on the individual product pages under the ‘distribution’ section.

All our equity funds offer a DRP. Investors who opt into DRPs will receive additional units in the ETF rather than receiving a cash payment. View our Distribution Reinvestment Policy.

Please note: Our commodities products do not pay dividends.

How to select a DRP

To participate in a DRP you need to log in to your profile with Computershare, the share registry for all of ETF Securities’ funds, select 'My Profile' and then choose 'Reinvestment Plans' to select which of your holdings you wish to enrol in the DRP. Note you have to select the DRP option for each ETF you hold.

Visit the Computershare Investor Centre or call 1300 555 159

Please note: Investors that have not used a CHESS sponsored broker may not have the ability to participate in DRPs, please speak to the platform/financial professional used.

Advantages of using a DRP
  • Not paying retail brokerage for the purchase of additional units issued

  • A way to automate and keep reinvesting the distribution you receive

  • Over time you are aiming to grow your investment and take full advantage of the effects of compounding

If you have any further questions, please don’t hesitate to reach out to the ETF Securities team via our details below.

T: +61 2 8311 3488

E: infoAU@etfsecurities.com.au