Most Evolve ETFs pay monthly distributions, with payment dates and ex-distribution dates published in advance on each fund page.

Distribution frequency varies by fund — income-focused ETFs (UltraYield, Enhanced Yield, HISA, fixed income) typically pay monthly, while some equity index ETFs pay quarterly. Specific schedules and amounts are announced via Evolve’s monthly distribution news releases.

The ex-distribution date is the cut-off date for being entitled to receive a fund’s upcoming distribution. To receive the distribution, you must own units before the ex-distribution date; buyers on or after that date will not receive that distribution.

On the ex-distribution date, the fund’s price typically drops by approximately the amount of the distribution because the value of the upcoming payment is no longer included in NAV. The ex-distribution date is usually one or two business days before the record date, depending on the exchange’s settlement cycle.

A DRIP (Dividend Reinvestment Plan) automatically reinvests your distributions into additional units of the same ETF. Evolve offers a synthetic DRIP through participating Canadian brokerages.

Because the DRIP is administered at the brokerage level rather than by Evolve directly, you’ll need to enable it in your brokerage account settings. Most major Canadian brokers (RBC Direct, TD Direct, Questrade, Wealthsimple, etc.) support synthetic DRIPs on Evolve ETFs at no additional cost.

Return of Capital is a distribution that returns a portion of your original investment rather than earned income. ROC is tax-deferred — it reduces your adjusted cost base rather than being taxed in the year received.

When ROC reduces your cost base to zero, any further ROC becomes taxable as a capital gain. ROC is common in covered call and enhanced yield strategies because option premiums and certain other distribution components may be characterized as ROC for tax purposes.

Tax treatment varies by fund and may include eligible Canadian dividends, foreign income, capital gains, or return of capital. Annual tax breakdowns are published each February.

The exact composition of each year’s distributions is disclosed on the annual T3 tax slips your brokerage issues. Distributions received inside a registered account (TFSA, RRSP, RESP, RRIF, RDSP, FHSA) are sheltered from immediate tax. In a non-registered account, the character of the distribution — eligible dividend, capital gain, foreign income, or ROC — determines how it is taxed.

T3 tax slips are issued by your brokerage, not by Evolve directly. Contact your broker if you have not received your slip by the end of March.

Your brokerage consolidates distribution data from all funds you hold and issues a single T3 (or T5 for certain account types) summarizing the year’s taxable amounts. Evolve publishes the breakdown of each fund’s distributions (eligible dividends, foreign income, capital gains, ROC) on evolveetfs.com each February to help your broker and your accountant.