Topic: How To Invest

Q: I am looking for your advice on the iShares S&P/TSX Composite High Dividend Index ETF.

Article Excerpt

A: The iShares S&P/TSX Composite High Dividend Index ETF, $17.60, symbol XEI on Toronto (Units outstanding: 35.3 million; Market cap: $621.3 million; www.blackrock.com/ca), aims to track the S&P/TSX Composite High Dividend Index, which effectively holds the 75 highest-yielding Canadian stocks. The index is market-capitalization weighted, with each stock capped at 5% (any stock may rise above 5% temporarily until rebalancing). Each industry group is capped at 30%, and the index rebalances quarterly on the same schedule as the S&P/TSX Composite Index. The iShares S&P/TSX Composite High Dividend Index ETF started up on April 12, 2011. Its MER is 0.22%, and it yields a high 5.8%. This fund’s top holdings are as follows: Royal Bank, 5.2%; TD Bank, 5.0%; TC Energy (formerly TransCanada), 5.0%; Telus Corp., 4.9%; Enbridge Inc., 4.7%, Canadian Natural Resources, 4.7%; Nutrien, 4.7%; BCE, 4.7%; Bank of Nova Scotia, 4.6%; and Pembina Pipeline, 4.5%. The iShares S&P/TSX Composite High Dividend Index ETF only includes the top 75 highest-yielding stocks of the S&P/TSX…