Q: Hello, I would like your opinion on XDIV, in contrast to others like XEI, ZDV, CDZ, etc. It is a concentrated dividend etf, is it a good thing or not? I like the MER…Thanks.
5i Research Answer:
XDIV looks solid with a low MER and distribution yield near 5%. It is a smaller ETF with under $1B in assets under management but it did outperform some of the names on the list. The concentrated holdings likely allow XDIV to offer the lower MER that it provides but that can be riskier. XDIV does aim to invest in low risk companies however so the concentration risk is somewhat offset. We think XDIV is a decent income option.