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BMO Low Volatility Canadian Equity ETF (ZLB)
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iShares Core S&P/TSX Capped Composite Index ETF (XIC)
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Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
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iShares Core MSCI Canadian Quality Dividend Index ETF (XDIV)
Q: If I had all of these funds would there be too much overlap? What is your favourite one out of the group?
5i Research Answer:
There will certainly be some overlap just due to the size of the Canadian markets, and the tilt it has to financials. We think that VDY and XDIV are very similar and offer essentially the same yield. We would keep XDIV as it charges a lower fee. We are fine with holding XLB and XIC, although there is overlap, XLB is less volatile which could be beneficial in periods of market turmoil. XIC is our favourite here offering broad market exposure with the lowest fee of the group.