ETF Buy for Yield & Growth

Article Excerpt

ISHARES DIVIDEND INDEX FUND $23.50 (Toronto symbol XDV; buy or sell through a broker) began trading in December, 2005. The fund currently holds the 30 highest yielding Canadian stocks. These stocks are included in the index based on their dividend growth, yield and average payout ratio. The weight of any one stock in the fund is limited to 10% of the fund’s assets. Its MER is 0.50%. iShares Dividend Index Fund now yields 2.8%. The fund’s top holdings are Manitoba Telecom at 6.8%; CIBC, 6.8%; Bank of Montreal, 6.2%; Russel Metals, 4.6%; TD Bank, 4.7%; National Bank, 4.5%; Teck Cominco, 4.3%; IGM Financial, 4.1%; Royal Bank, 4.0%; and BCE Inc., 3.9%. iShares Dividend Index Fund is a buy. If you buy it, however, you should adjust your portfolio to offset its over 50% weighting in the Finance sector. sector…