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iShares Core S&P/TSX Capped Composite Index ETF (XIC)
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iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
Q: Please recommend a CDN ETF with a dividend that has a good chance of capital growth in the next 12 months.
5i Research Answer:
We would consider CDZ, and XIC here. The iShares S&P/TSX Canadian Dividend Aristocrats ETF (CDZ) has a good AUM of $919M, a distribution yield of 3.9%, and has returned 6.5% annually since inception (including distributions). The iShares Core S&P/TSX Capped Composite ETF (XIC) has an AUM of $8.9B, a yield of 3.2%, and has returned 6.7% annually since inception, including distributions. Given the similar returns across the two names, we would prefer XIC as it has a lower MER at 0.06%, vs. CDZ at 0.66%.