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BMO ETF
0.2% headline yield, and 100% of it is classified as return of capital. ROC is a tax label, not by itself a sign of capital being paid back; for some funds, such as REITs, it reflects depreciation passed through. The capital trend is the clearer signal. Over the last 3 years its capital grew 27%/yr.
The trailing-12-month figures below include a single large distribution. They may not reflect a recurring income stream.
Payout over time
Fund health
Where the 3-year return came from
The unit price grew 27.0% a year over this window while distributions added 0.5%: the income came on top of capital growth, not out of it.
3-year annualized, on a shared scale: bars left of the line are negative. Capital appreciation is the fund's own unit-price change; income return is the contribution from distributions being reinvested. The two combine (multiplicatively) to the total return.
Risk and resilience
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 |
|---|---|---|
| Return of capital | 100% | $0.2190 |
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. If return of capital keeps building up and your cost base reaches zero, any further return of capital is taxed as a capital gain in the year you receive it, not deferred to a sale.
Based on BMO ETF'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 0.2% 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. The return-of-capital portion is not taxed now: it lowers your cost base, so more of your eventual sale is taxed as a capital gain instead.
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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The cash distribution was reduced in 7 calendar years since 2010.
What you own
The top 2 sectors shown are 100% of the fund; Materials is the largest at 88%.
Coverage 153.3×: The fund paid a 0.2% distribution rate against a 27.6% a year total return; the total return was at least the current distribution rate over this window.