Q: This etf seems to have come out of the latest downturn without to much difficulty, so wandering what the reason for this latest performance. Is it because of the fairly low fees, or the quality of the stocks being held or is it a combination of a number of factors. I am thinking of investing in this etf for the long haul. Many tnx.
5i Research Answer:
XDIV is certainly doing well, up 4.4% YTD and with a 4.44% yield. It has very large positions in several companies that are seen as more defensive, and have held up well this year. For example ENB is 9.2% (+4% YTD), SU 8% (up 5.2% YTD), PPL 7.4% (up 8% YTD) and TD is 8.9% (+12% YTD). Obviously, when big positions do well the ETF performance will follow. This of course adds risk if large positions reverse. But, at $2B in assets and low fees of 0.11%, we would be quite comfortable owning this for Canadian dividend exposure.