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Everything you need to know about investing in split shares

Featured writing by Allan Norman · M.Sc. · CFP · CIM

The Short Version

Split shares are not on most investors' radar, and at first glance their structure can look complicated, which is a shame because they hold interesting possibilities for very different kinds of investors. This piece breaks down what these instruments are and how they generally work, explaining the way a single underlying investment can be divided into pieces with quite different characters, one leaning toward steady income and the other toward more aggressive growth. Understanding that split is the key to seeing where, if anywhere, they might fit. It is a useful read for a curious investor who wants to look beyond the usual menu and understand a less familiar option, with a clear sense of both the appeal and the added complexity, so they can judge whether either side of a split share lines up with what they are trying to accomplish.

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