Topic: How To Invest

Q: Pat, would you please give me 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, $21.31, symbol XEI on Toronto (Units outstanding: 20.2 million; Market cap: $430.5 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 4.9%. This fund’s top holdings are as follows: Manulife Financial, 5.5%; TC Energy (formerly TransCanada), 5.2%; Telus Corp., 5.1%; Bank of Montreal, 5.0%; BCE, 5.0%; Bank of Nova Scotia, 5.0%; Enbridge Inc., 5.0%, CIBC,4.9%; Pembina Pipeline, 4.7%; and Sun Life Financial, 3.9%. The iShares S&P/TSX Composite High Dividend Index ETF only includes the top 75 highest-yielding stocks of the S&P/TSX…

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