iShares Core Canadian Short Term Bond Index ETF INITF

Primary Symbol: T.XSB

The investment objective of the Fund is to provide income by replicating, to the extent possible, the performance of the FTSE Canada Short Term Overall Bond Index ,net of expenses. Under normal market conditions, the Fund will primarily invest in Canadian fixed income securities. The Index is a market capitalization-weighted index consisting of a broadly diversified range of bonds which may include any or all of federal, provincial, corporate including certain qualifying asset-backed securities and municipal bonds.. To achieve its investment objective the Fund uses an indexing strategy to achieve its investment objective. Under this strategy, the Fund seeks to replicate the performance of the Index, net of expenses, by employing, directly or indirectly, through investment in one or more exchange-traded funds managed by BlackRock Canada or an affiliate and or through the use of derivatives, a replicating strategy or sampling strategy.

TSX:XSB - Post by User

iShares Core Canadian Short Term Bond Index ETF

Bullboard Posts

Next >>

Post by YYZGUYon Jun 10, 2006 9:53am

564 Views

Post# 10972048

Distributions and Value

Every time there is a distribution, the value of our units drops by the same amount. Doesn't this mean that we are essentially earning income (from the distribution) that is fully taxable in return for a capital loss (from the decrease in value resulting from the distribution) which is only 1/2 taxable? Notwithstanding related commissions, wouldn't it make sense to sell the day before the distribution (high value) and re-buy the day after the distribution at a lower value effectively then making the value of the distribution a capital gain (1/2 taxable) instead of getting the distribution. Am I missing something here? Thoughts and comments?

Bullboard Posts

Next >>

Canada Nickel Company posts best result to date at Reid discovery