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Purpose Investments
About 96% of the 2.5% yield is recurring income; the rest is capital gains or return of capital. Too new to show a capital trend.
Payout over time
Fund health
A cash or savings ETF holds deposits or short-term paper, so its unit price does not move. What matters is the yield it pays now, which resets with interest rates.
Annualized distribution yield
2.4%
Latest: 2.4% (2026-06)
The yield has fallen from 5.3% to 2.4% over the last 24 months and has moved alongside Bank of Canada rate moves. The trailing 12-month figure averages in the older, higher-rate months. The current run-rate annualizes the latest payout; it is not a forecast of future distributions.
What you are holding
Holds Banner Trust 2.5732%.
The unit price is designed to stay stable; what changes is the interest income the fund collects and passes through as distributions.
Cost
0.25% MER
On a thin yield, the fee is a direct drag: it is deducted before the distribution reaches unit holders.
How it's taxed
The CRA taxes each distribution dollar by its character. These shares are measured against the full taxable distribution, including any portion the fund reinvested as units rather than paying in cash.
| Character | % of taxable | $ / unit |
|---|---|---|
| Interest / other income | 96% | $2.8237 |
| Return of capital | 4% | $0.1067 |
Return of capital is not tax-free. It lowers your adjusted cost base, so the deferred tax can increase a later capital gain or reduce a later capital loss when you sell.
Based on Purpose Investments's 2025 T3 / tax-factor filing. Character can vary year to year. This is not tax advice; consult a tax professional about your situation.
Character mix by year
What you keep, in your account
Each figure below starts from the headline yield of 2.5% and shows an estimate of what you keep after tax. Where you hold the fund changes the answer: a TFSA shelters Canadian tax and can still lose foreign withholding tax when the fund has foreign withholding, a non-registered account taxes each character at its own rate, and an RRSP defers tax until you withdraw.
These figures are estimates at the top ON marginal tax rate, not your personal rate.
Illustrative, not tax advice.
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Next steps
Prices as of 2026-07-27. Distributions as of 2026-07-28. Tax character year 2025.
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