ETF Adjustments

Why ETF holders get caught by ACB drift

ETF and mutual fund investors often have ACB changes that do not show up in a broker’s simple book value display. Return of capital reduces ACB. Reinvested capital gain distributions increase it. DRIP purchases add shares and cost to the pool.

If those events are missed, the sale may later show too much gain or too little loss.

Adjustment types supported in Phase 1

The launch workflow explicitly supports:

• DRIP transactions;
• return of capital adjustments;
• reinvested capital gain distributions;
• stock splits.

Each one changes the running ACB or share count in a specific way, and the ledger should show the effect after the row is applied.

Why these events belong in the same ledger as buys and sells

The ACB problem gets harder when adjustments live in a separate notes file or spreadsheet tab. MyCostBase keeps them inline so historical recalculation works correctly after an edit and so the audit trail remains readable in one timeline.

What to keep on hand

For ETF adjustments, you should preserve the records that support the entry, such as issuer tax information, slips, or year-end distribution details. The product can store the adjustment in the ledger, but the underlying source still matters if you are ever asked to explain it.

Where these adjustments show up later

These are a common reason broker figures differ from MyCostBase during reconciliation. If you want to see how those differences are surfaced for tax-year review, continue to Reconciliation and Reports.