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iShares Canadian Select Dividend Index ETF (XDV)
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Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
Q: Looking to buy a canadian dividend etf as one of my core holdings. Do you like VDY or XDV? What are the differences? Or is there another canadian dividend ETF you would recommend?
5i Research Answer:
They are similar, with VDY having lower fees and more in assets and much better long term performance (11.04% vs 8.3% over five years). We would prefer VDY but note it does tend to have larger position sizes (RY is 16% right now) and this can increase overall volatility. We would be fine with it for dividend exposure, though.