XDIV ETF

XDIV ETF: Full review of the iShares Core MSCI Canadian Quality Dividend Index

XDIV ETF Investment objectif

XDIV invests in Canadian stocks with strong financials. The companies selected pay above-average dividend yields and have either paid steady or increasing dividends.

ZWB – Full review of BMO Covered Call Canadian Banks

Best Canadian dividend ETF 2023- Top 16

What’s the MSCI Canada High Dividend Yield index?

XDIV is an index ETF that holds the constituents of the MSCI Canada High Dividend Yield. The replicated index is a quality index that includes strict criteria to achieve an equity portfolio of companies with solid fundamentals. Since XDIV is a dividend ETF, the focus is on achieving sustainable and persistent dividend payments.

Find below more details on the selection process:

  • targets companies with high dividend income
  • only stocks with higher than average dividend yields
  • companies with a track record of consistent dividend payments and with the capacity to sustain dividend payouts into the future
  • additional factos: return on equity (ROE), earnings variability, debt to equity (D/E), and price performance (past 12 months)
  • 10% security capped index

MSCI vs MSCI Canada High Dividend Yield – gross return comparison

MSCI website

XDIV Historical performance

XDIV vs VDY vs XDV

How to choose a good dividend ETF

– Total return: Though the focus here is on the dividend yield, you have to keep in mind the total return. The profit or loss we make on any investment combines both dividend income and capital gain or loss. Looking at the long-term performance of the fund is crucial. An ETF that provides a good capital appreciation with a high dividend yield is preferable.

Diversification: A diversified ETF is always a safer option. Some high yield ETFs are sector-specific (Financials, Energy or Gold). The ones focused on Energy and Gold have had an inferior long-term performance and carry high volatility risk.

Volume and liquidity of the ETF. The higher the asset under management, the lower the trading costs of the ETF (difference between the bid and ask price).

XDIV ETF Dividend distribution

Ex-DatePayable
Date
Cash
Amount
Total
Distrib
Reinvested
Dec 29, 2022Jan 5, 2023CAD 0.08875CAD 1.29382CAD 1.20507
Nov 21, 2022Nov 30, 2022CAD 0.08800CAD 0.08800CAD 0.00000
Oct 25, 2022Oct 31, 2022CAD 0.08800CAD 0.08800CAD 0.00000
Sep 23, 2022Sep 29, 2022CAD 0.07200CAD 0.07200CAD 0.00000
Aug 25, 2022Aug 31, 2022CAD 0.07200CAD 0.07200CAD 0.00000
Jul 25, 2022Jul 29, 2022CAD 0.07200CAD 0.07200CAD 0.00000
Jun 24, 2022Jun 30, 2022CAD 0.08400CAD 0.08400CAD 0.00000
May 24, 2022May 31, 2022CAD 0.08400CAD 0.08400CAD 0.00000

XDIV ETF portfolio

NameWeight (%)
MANULIFE FINANCIAL CORP9.23
SUN LIFE FINANCIAL INC9.11
ROYAL BANK OF CANADA8.64
TORONTO DOMINION8.60
BANK OF NOVA SCOTIA8.57
FORTIS INC7.78
RESTAURANTS BRANDS INTERNATIONAL I7.59
ROGERS COMMUNICATIONS NON-VOTING I6.76
SHAW COMMUNICATIONS INC CLASS B5.51
EMERA INC4.06

Sector breakdown

TypeFund
Financials50.40
Communication18.77
Utilities16.83
Consumer Discretionary10.05
Energy1.91
Materials1.72
Cash and/or Derivatives0.34