The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ) emphasizes long-term compounding by targeting 90 financially healthy companies with a focus on dividend growth. Offering a dividend yield of 3.23%, it has delivered impressive returns of 19.71% over the past year and 40.67% over five years. However, investors should note that its 0.66% expense ratio is higher than many lower-fee Canadian equity ETFs, which may impact overall performance.
Pros:
- Targets dividend-growing companies
- Monthly dividends
Cons:
- High expense ratio
- Underperformance compared to lower-fee ETFs
The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ.TO) may be suitable for income-focused investors seeking exposure to a diversified portfolio of established Canadian companies with a history of dividend growth. However, potential investors should weigh the higher expense ratio against the attractive dividend yield and past performance when considering its fit within their overall investment strategy.