Canadian (TSX) Dividend ETFs

Which Canadian Dividend ETF should I add to my portfolio?
Here are the three biggest Dividend ETFs in Canada.

Canadian Dividend ETF Name Symbol MER Yield
BMO Canadian Dividend ETF ZDV 0.35 % 5.20 %
iShares Dow Jones Canada Select Dividend Index Fund XDV 0.55 % 3.85 %
iShares S&P/TSX Canadian Dividend Aristocrats Index Fund CDZ 0.67 % 3.29 %



The BMO Canadian Dividend ETF (ZDV) looks pretty good, with a low cost MER of just 0.35%.

Let’s investigate further, by breaking down the holdings of these ETFs, by sector weighting.

Sector ZDV (MER 0.35%) XDV (MER 0.55%) CDZ (MER 0.67%)
Financials 33.1% 51.3% 24.1%
Energy 20.5% 15.2% 18.0%
Consumer Discretionary 16.5% 4.8% 20.9%
Utilities 15.7% 6.5% 10.6%
Industrials 2.9% 6.5% 10.5%
Telecommunication Services 6.6% 15.3% 5.5%
Other Sectors 4.3% 0.0% 10.5%


Looking at this table, the iShares Dow Jones Canada Select Dividend Index Fund (XDV) looks a bit too heavy in both Financials and Telecommunications (versus a world sector breakdown of 24 % and 5 %, respectively).

The BMO Canadian Dividend ETF (ZDV) appears to be more in line with the true weighting of the overall Canadian market.

Although, the weighting looks ok, the MER price of 0.67%, rules out the iShares S&P/TSX Canadian Dividend Aristocrats Index Fund (CDZ)

Conclusion

In my opinion, the best Canadian Dividend ETF is the BMO Canadian Dividend ETF (ZDV)

Individual Stock Holdings – Comparison

In this final table, I have further broken down the sector weightings down to their individual company holdings. It’s interesting to see which companies have been included/excluded in each ETF.

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3 Comments

    1. Thanks. The assets under management for BMOs ZDV is small in comparison to the two iShares products. I’m surprised more Canadians haven’t discovered ZDV yet.

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