Caldwell Declares 2021 Special Year-End Distribution for U.S. Dividend Advantage Fund ETF: What Inve

Author : Caldwell Investments | Published On : 24 Oct 2025

Toronto, ON – Caldwell Investment Management Ltd. has announced the estimated annual special year-end distribution for the 2021 tax year for its ETF Series of the Caldwell U.S. Dividend Advantage Fund. The preliminary figures, released on December 7, 2021, are intended to inform investors about potential tax obligations and reinvestment options as the calendar year comes to a close.

Unlike the regular monthly distributions investors typically receive, this special year-end distribution represents the Fund’s obligation to distribute any net income or realized capital gains accumulated throughout the year. As an actively managed ETF, the Fund must make these distributions before its tax year-end on December 15, 2021, as required by Canadian tax regulations.

The amount announced on December 7 is an estimate based on figures as of December 6, 2021, and may be adjusted following any final subscription or redemption activity before the record date. Finalized distribution amounts are expected to be confirmed and released by December 17.

Understanding the Special Distribution

The special year-end distribution will be made in cash and is expected to consist primarily of realized capital gains and any undistributed net income earned during the year. These amounts are entirely separate from the Fund’s regular monthly distributions, meaning that investors may receive both depending on the structure of their holdings.

Investors holding ETF units in non-registered accounts should note that these distributions may be taxable and must be reported on their 2021 income tax returns. In addition, such distributions may increase the adjusted cost base (ACB) of their investment. Investors are reminded that this information is provided for general awareness and should not be considered personalized financial or tax advice.

Caldwell emphasizes that while distributions can benefit investors seeking steady income or reinvestment opportunities, they should not be confused with overall fund performance. A distribution reflects taxable income generated within the Fund—not necessarily an increase in the value of an investor’s holdings.

Reinvestment Opportunities Through DRIP

For investors looking to maximize the compounding potential of their investments, Caldwell offers a Distribution Reinvestment Plan (DRIP) for its ETF Series. This plan allows investors to automatically reinvest distributions into additional ETF units rather than receiving cash payments. Over time, this reinvestment can lead to compounded growth and may improve long-term portfolio performance.

Enrollment in the DRIP program can be facilitated through an investor’s financial advisor or brokerage platform. The ETF Series of the Caldwell U.S. Dividend Advantage Fund trades on the Toronto Stock Exchange under the ticker symbol UDA. Check this out.

A Brief Look at the Fund’s Evolution

The Caldwell U.S. Dividend Advantage Fund has undergone several key developments since its inception. Originally launched as a closed-end investment fund on May 28, 2015, it transitioned to an open-end mutual fund structure on November 15, 2018. During this transition, all existing units were converted to Series F units, giving investors greater flexibility and accessibility while maintaining the Fund’s focus on high-quality U.S. dividend-paying equities.

In October 2019, Caldwell took additional steps to enhance investor value by reducing management fees. Series A units were lowered to 1.75%, while Series F units were adjusted to 0.75%. These fee reductions demonstrated the firm’s commitment to offering cost-effective investment solutions while improving net returns for unitholders.

Key Considerations for Investors

While the year-end distribution announcement is a routine and necessary part of managing an ETF, investors should remain aware of the implications. Distributions are not necessarily indicators of positive fund performance—receiving a distribution simply means the fund realized income or gains during the year.

Investors should also pay close attention to the tax treatment of these distributions. When held in non-registered accounts, capital gains, dividends, and other forms of income may be taxable in the year received. Additionally, if the adjusted cost base of an investment drops below zero due to returns of capital, investors could incur capital gains tax on the negative amount.

Caldwell strongly encourages all unitholders to consult their financial advisors for personalized guidance regarding these distributions and to review fund materials for additional information.

The firm’s proactive communication around year-end distributions reflects its commitment to transparency, investor education, and operational excellence. With a focus on responsible fund management and client success, Caldwell Investment Management continues to serve as a trusted partner to Canadian investors seeking stable, disciplined, and well-structured investment opportunities.

(Disclaimer : We are not associated with Caldwell Investment Management)