iSHARES SP TSX COMP HIGH DIV INDEX ETF (XEI.TO)

(A Top Pick July 18/14. Up 0.42%.) Likes it because it gives a little bit of diversification away from oils and banks.

It is worth hanging onto. The dividend is very attractive. The good quality dividend paying companies should do well over time. He would prefer it over the XIU-T. It is just like XDV-T.

This has a lot of dividends, and a lot of those dividends are coming from oil stocks which have been beaten up somewhat. It is probably in a price range now where you could buy it.

An ETF that would best weather interest rate increases? He would be looking at one of the low cost dividend ETF’s like iShares S&P/TSX Equity Income (XEI-T). This is about 20 basis points. In this interest rate environment, he has quite a bit of Money Market that he is sitting in, because he knows at some point rates are going to rise and you don’t want to be in any long-term bonds.

Good diversification across sectors. It is heavy in energy and oil, however. It is geared toward bigger dividend payers. The average dividend is about 4% or so. It is concentrated, so you have more volatility.

This used to be 55 basis points, which is very high. They chopped it along with a number of other ETF management fees down to 20 basis points. This is now yielding about 4.3% and he likes it. This has lots of growth in it.

Yielding just over 4%. The fees are reasonable.

All great companies. Hang on to it.

Used to think it was too expensive, but when Blackrock chopped the prices on a number of their ETF’s, including this one, it made it worthwhile. Plus it is paying a dividend of about 4%. This is more for his income focused accounts.