The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) seeks to track the performance of a broad Canadian equity index that measures the investment return of common stocks of Canadian companies that are characterized by high dividend yield. VDY employs a passively managed, full-replicated index strategy to provide exposure to Canadian large-, mid-, and small-cap stocks, diversified across all industries.
Companies that pay dividends are signs of maturity and strength. Dividends can ease the effects of market volatility if they are reinvested. They have better valuation metrics and a higher dividend yield than the broader Canadian market. These companies tend to have proven management, solid balance sheets and strong cash flow.
Quickly compare VDY to other investments focused on Canadian equities by fees, performance, yield, and other metrics to decide which ETF fits in your portfolio.
Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) is a great Canadian dividend ETF, but there are other ETFs consistently outperforming this investment.
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