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iShares Core MSCI All Country World ex Canada Index ETF (XAW)
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iShares Core MSCI Global Quality Dividend Index ETF (XDG)
Q: Which one do you prefer for a 3 year hold?
5i Research Answer:
XDG is a 'quality dividend' ETF. Global, but 60% US. Canada is 2.5%. XAW is all-country, ex-Canada, with 65% US exposure. XAW five year is 11.87%; XDG is 8.12%. The performance diffference has come from XAW having a far greater exposure to tech, which typically has low dividends. We would consider them fairly different. Indicated yield is 3.6% on XDG vs 1.47% on XAW. We would lean to XAW, but a more conservative investor looking for more yield is likely better off with XDG.