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iShares S&P/TSX Composite High Dividend Index ETF (XEI $28.99)
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iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $38.06)
Q: Hello
Just curious to how much overlap is there between CDZ and XEI? Is there a need to own both or can you just hold one. If only one which one do you prefer?
Jimmy
Just curious to how much overlap is there between CDZ and XEI? Is there a need to own both or can you just hold one. If only one which one do you prefer?
Jimmy
5i Research Answer:
There is a fair degree of difference, both in holdings and sector allocations. 5-year performance is similar, though XEI has a slight edge there. We think both could be owned. XEI focuses on high dividends and CDZ on dividend growth. With interest rates likely to decline in Canada, CDZ might start catching up a bit and we would side with it today, though it is a fairly tight contest overall.