iShares S&P/TSX Composite High Dividend Index ETF (XEI) seeks long-term capital growth by replicating the performance of the S&P/TSX Composite High Dividend Index. The ETF seeks to provide long-term capital growth by primarily investing in Canadian equity securities. The Index is comprised of 50 to 75 stocks selected from the S&P/TSX Composite Index. Index constituents are ranked and selected based on their indicated dividend and are capped at 5% weight, while each sector is capped at 30% weight.
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.
Top 10 XEI Holdings
| Ticker | Name | Weight |
|---|---|---|
| SU | SUNCOR ENERGY INC | 5.21% |
| CNQ | CANADIAN NATURAL RESOURCES LTD | 5.06% |
| NTR | NUTRIEN LTD | 5.03% |
| RY | ROYAL BANK OF CANADA | 5.02% |
| TRP | TC ENERGY CORP | 5.02% |
| ENB | ENBRIDGE INC | 5.00% |
| TD | TORONTO DOMINION | 4.97% |
| BCE | BCE INC | 4.71% |
| T | TELUS CORP | 4.71% |
| BMO | BANK OF MONTREAL | 4.42% |
XEI ETF Review
| Manager | ETF | Inception | MER | AUM | P/E | Yield | Distributions | 1Y | 3Y | 5Y | 10Y | 15Y |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
 | QCD | 2017-01-30 | 0.45% | $47,800,000 | 12.72 | 3.77% | Annually | 1.9% | 8.9% | 7.9% | N/A | N/A |
 | XEI | 2011-04-12 | 0.22% | $1,571,793,430 | 10.76 | 5.26% | Monthly | 3.10 | 10.92 | 8.58 | 6.14% | N/A |
 | ZDV | 2011-10-21 | 0.39% | $1,009,290,000 | N/A | 4.37% | Monthly | 4.80% | 10.09% | 7.96% | 5.98% | N/A |
 | FXM | 2012-02-13 | 0.65% | $305,610,000 | 9.47 | 2.96% | Quarterly | 0.86% | 10.89% | 10.67% | 6.42% | N/A |
 | CCEI | 2021-03-31 | 0.05% | $311,119,756 | 12.66 | 3.22% | Quarterly | 6.46% | N/A | N/A | N/A | N/A |
 | DXC | 2017-01-20 | 0.84% | $220,200,000 | N/A | 2.44% | Monthly | N/A | N/A | N/A | N/A | N/A |
 | ETSX | 2023-01-09 | N/A | $29,614,000 | N/A | 9.91% | Monthly | 4.01% | N/A | N/A | N/A | N/A |
 | FCCV | 2020-06-05 | 0.39% | $139,700,000 | 7.06 | 3.08% | Quarterly | 0.99% | 12.79% | N/A | N/A | N/A |
 | FST | 2001-11-30 | 0.67% | $69,965,022 | 11.56 | 1.60% | Quarterly | 6.46% | 11.79% | 8.83% | N/A | N/A |
 | FLCD | 2019-02-13 | 0.06% | $198,070,000 | 12.77 | 3.20% | Quarterly | 6.05% | 9.70% | N/A | N/A | N/A |
 | GCSC | 2021-03-31 | 0.67% | $10,494,254 | 16.66 | 1.60% | Quarterly | 15.90% | N/A | N/A | N/A | N/A |
 | HLIF | 2022-06-08 | 0.79% | $107,270,000 | N/A | 8.00% | Monthly | 0.24% | N/A | N/A | N/A | N/A |
 | HXT | 2010-09-13 | 0.04% | $3,745,125,989 | N/A | N/A | N/A | 4.84% | 10.71% | 9.87% | 8.21% | N/A |
 | PDC | 2011-06-16 | 0.54% | $778,376,303 | 11.08 | 4.86% | Monthly | 2.69% | 8.71% | 7.20% | 6.73% | N/A |
 | QCN | 2018-01-24 | 0.04% | $1,357,187,206 | 12.58 | 3.34% | Quarterly | 4.73% | 10.06% | 9.64% | N/A | N/A |
 | MCLC | 2017-04-10 | 0.40% | $321,170,000 | N/A | 2.75% | Semi-Annually | 5.77% | 12.61% | 10.05% | N/A | N/A |
 | NSCE | 2020-01-23 | 0.69% | N/A | 20.43 | 1.11% | Quarterly | 16.18% | 12.99% | N/A | N/A | N/A |
 | RCD | 2014-01-09 | 0.42% | $140,520,000 | 13.24 | 3.98% | Monthly | 5.25% | 12.00% | 9.44% | 6.46% | N/A |
 | TTP | 2016-03-22 | 0.05% | $1,620,910,000 | N/A | 2.89% | Quarterly | 4.74% | 10.04% | 9.63% | N/A | N/A |
 | VDY | 2011-10-21 | 0.22% | $2,360,000,000 | N/A | 2.64% | Monthly | 0.76% | 13.25% | 10.07% | 8.01% | N/A |
XEI vs VDY
VDY is the better ETF. VDY is the superior performing, less volatile, better value, more popular ETF than XEI which is older, more diversified and costs the same.
