Topic: How To Invest

Q: May I have your recommendation on the ETF trading under the symbol XDIV? I am considering it for its dividend income. Thanks.

Article Excerpt

A: iShares Core MSCI Canadian Quality Dividend Index ETF, $23.46, symbol XDIV on Toronto (Units outstanding: 30.4 million; Market cap: $713.2 million;, tracks the MSCI Canada High Dividend Yield 10% Security Capped Index. This index aims to invest in Canadian stocks with above-average dividend yields and steady or increasing dividends. It also targets stocks with strong overall financials, including solid balance sheets and less volatile earnings. The weight of any one stock in the portfolio is capped at 10%. The industry breakdown of companies in the fund is as follows: Financials (50.3%), Utilities (22.0%), Communications (18.3%), Consumer Discretionary (7.1%) and Energy (2.0%). Investors who hold this ETF should adjust their overall portfolios to counterbalance the fund’s heavy concentration in Finance. The ETF’s top investments are in TD Bank, 9.5%; Royal Bank, 9.4%; Manulife, 8.8%; Sun Life, 8.7%; Fortis, 8.4%; Scotiabank, 8.0%; Restaurant Brands International (7.1%); Rogers Communications, 6.1%; Shaw Communications, 5.1%; and Emera, 4.8%. The fund launched in July 2017 and charges a..