ETF Buy for Yield & Growth

Article Excerpt

ISHARES DIVIDEND INDEX FUND $24.12 (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 2.9%. The fund’s top holdings are CIBC at 6.8%; Manitoba Telecom at 6.4%; Bank of Montreal, 5.4%; TD Bank, 4.7%; Teck Cominco, 4.7%; Russel Metals, 4.4%; BCE Inc., 4.2%; IGM Financial, 4.0%; Laurentian Bank, 3.9%; and Magna International, 3.9%. If you buy iShares Dividend Index Fund, you should adjust your portfolio to offset its over 50% weighting in the Finance sector. iShares Dividend Index Fund is a buy. buy…