Ideal for investors seeking reliable income, the iShares S&P/TSX Composite High Dividend Index ETF (XEI) boasts a dividend yield of 4.25% and has delivered a robust one-year return of 18.87%. With a focus on high-dividend stocks from the TSX Composite, this ETF offers monthly payouts and has garnered positive recognition for its moderate total returns and decent dividend growth. Furthermore, XEI is a suitable choice for Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP), enhancing its appeal for long-term investors.
Pros:
- High dividend yield
- Suitable for steady income
Cons:
- Moderate total return
- Market risk associated with high-dividend stocks
The iShares S&P/TSX Composite High Dividend Index ETF (XEI.TO) may be particularly suitable for income-focused investors seeking exposure to Canadian equities with a solid dividend yield and moderate growth potential. Its monthly payouts and favorable tax treatment make it a viable option for those looking to enhance their portfolios within tax-advantaged accounts such as TFSAs and RRSPs.