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iShares US Dividend Growers Index ETF (CAD-Hedged) (CUD)
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Vanguard Dividend Appreciation FTF (VIG)
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iShares Core Dividend Growth ETF (DGRO)
Q: I am looking for a US listed ETF that holds US listed Dividend Growing Equities. I have found RDVY (First Trust Rising Dividend ETF) and CUD (Ishares US Dividend Growers). Both have relatively high MERs for ETFs (0.49 % and 0.6% respectively). Both have a current distribution of around 2% yield. Is there anything else out there in this segment of the market ? While CUD is hedged I am not too concerned about that at this time. Would you prefer one of these over the other or would you think splitting between the two. I will be holding them in my RRSP and am looking to invest around 1% of my total RRSP holdings in this investment.
5i Research Answer:
There are more options. DGRO has $26.7B in assets, fees of only 0.08% and five-year return of 12.08% (RDVY is 14% and CUD, hurt by the dollar, is only 6.38%). VIG is another option. $78B in assets, fees 0.06%, five year 12.87%. We have often recommended VIG for its liquidity and fees. But RDVY has more than $10B in assets and we would be comfortable with it and would not see the need to split. Its fee seems justified by its outperformance.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VIG.