XEI: Higher Dividend And More Diversified Than XDIV

Jeffrey Fischer, CFA
1.36K Followers
(8min)

Summary

  • Canadian equity funds offer great diversification that U.S. investors may not realize, with less technology exposure and higher dividends compared to U.S. counterparts.
  • The iShares S&P/TSX Composite High Dividend Index ETF provides a diversified portfolio with a 5.5% dividend yield.
  • XEI:CA's composition includes less financials exposure than the S&P/TSX 60 Index, but notably higher energy and utilities weightings.
  • XEI is a recommended consideration for investors with less diversified exposures, and especially U.S. investors.

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Canadian Equity Funds haven't earned a strong following on Seeking Alpha, but do provide great diversification opportunities, especially for U.S. investors who don't wish to wander too far from their borders. Notably, investors of all domiciles may find themselves with

This article was written by

1.36K Followers
25 years+ in the financial/investment industry (see LinkedIn for more details). Currently self employed with my own investor service that supports top notch Seeking Alpha analysts. Former Senior Managing Editor here at Seeking Alpha; the tail end of an ~11 year stint working for SA. Prior to this, I worked as a Treasury Manager for a large commodities firm, where I managed financial liquidity, currency risk hedge portfolios, and investment arbitrage trades. I've also worked in financial performance analytics, trading, and banking. I have a healthy interest in behavioral finance and love a good investment "story" at least as much as a financial analysis. My investment ideas on SA will likely be a mix of contrarian, event-driven, and structured trades. I completed the requirements of the CFA Charter in 2003, and am an active member of the CFA Institute. MY PERSONAL FAVS:https://seekingalpha.com/article/4688259-qyld-and-contango-capture-for-possible-15-percent-yieldhttps://seekingalpha.com/article/4690866-tripadvisor-plummet-on-m-and-a-rejection-brings-stock-back-into-playhttps://seekingalpha.com/article/4707286-eventbrites-net-cash-is-an-illusion-sell

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BCE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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