Investing · ETF deep dive
CDZ iShares S&P/TSX Canadian Dividend Aristocrats Index ETF
The different one: a dividend-growth screen produces 96 names, a mid-cap tilt, no Big Five bank in the top 10 — and the highest fee of the six.
Best for: Dividend-growth believers who want actual diversification from a Canadian income fund — and will pay for it
Pros
- Screens for companies that raised dividends every year for 5+ years — growth, not just yield
- By far the least concentrated: 96 holdings, top-10 only 24%
- The only fund here not ruled by banks — industrials, real estate and mid-caps get real weight
- Oldest track record in the category (2006)
Cons
- 0.66% MER — six times XDIV, for an index fund
- Yield-weighted mid-caps bring liquidity and quality questions the large-cap funds avoid
- Lowest headline yield of the six (3.01%)
What's inside CDZ
| Underlying fund | Weight |
|---|---|
| South Bow | 3.2% |
| TELUST | 2.8% |
| Westshore TerminalsWTE | 2.7% |
| Gibson EnergyGEI | 2.5% |
| Mullen GroupMTL | 2.4% |
Energy 20.8% · Financials 17.5% · Industrials 15.1% · Real Estate 8.8% — the only fund here NOT dominated by financials (Provider sector table, Jun 9, 2026) · holdings as of June 9, 2026 (96 holdings; top 10 = just 24.0%)
The deep dive
CDZ asks a different question. The other five ask “what yields a lot?”; the Aristocrats index asks “who has raised their dividend every year for at least five years?” — and the answer looks nothing like the rest of the category: TELUS and pipelines, yes, but also Westshore Terminals, Mullen Group, a REIT in the top ten, 96 names, and not one Big Five bank near the top. Top-10 concentration of 24% in a category that runs 45–75%.
Two honest costs. The screen reaches into mid-cap, yield-weighted territory — smaller companies, bigger yields, more idiosyncratic risk per name (diversified across more names). And the fee: 0.66% is active-fund pricing for index plumbing, six times XDIV. CDZ’s defenders argue the dividend-growth discipline and genuine diversification earn it; the fee compounding says make that argument deliberately.
The rest of the field
The rest of the field, one line each:
- VDY — yield-ranked, bank/energy-heavy
- XEI — yield slice of the Composite, more balanced
- XDIV — quality screen, 0.11% MER, 21 stocks
- XDV — 30-stock concentrate, bank-heavy
- ZDV — BMO rules-based blend
Frequently asked questions
What does CDZ hold?
CDZ holds 96 dividend-growth stocks, yield-weighted, mid-cap tilt — led by South Bow at 3.2%, TELUS (T) at 2.8%, Westshore Terminals (WTE) at 2.7% (as of June 9, 2026 (96 holdings; top 10 = just 24.0%)). Sector mix: Energy 20.8% · Financials 17.5% · Industrials 15.1% · Real Estate 8.8% — the only fund here NOT dominated by financials (provider sector table, jun 9, 2026). Weights drift between rebalances — s&p/tsx canadian dividend aristocrats — dividends increased every year for 5+ consecutive years (per blackrock’s description).
What does CDZ cost?
Currently 0.60% management fee; 0.66% published MER (page as of Jun 9, 2026). The Canadian dividend-ETF field spans a six-fold fee range (0.11% to 0.66%) — see the full comparison, and what fee gaps compound into with the MER calculator.
How is CDZ's yield taxed, and which account should hold it?
Distributions from Canadian dividend payers are largely eligible dividends, which benefit from the dividend tax credit in non-registered accounts — the dividend income calculator shows your after-tax yield by province. In a TFSA the income is simply tax-free; in an RRSP it's deferred. One caution: a fund's distribution can include other income types — each provider publishes the annual tax character. Compare the field on our dividend ETF guide.
The bottom line
The only Canadian dividend ETF that actually diversifies you — at a price that demands you value that. If the 0.66% stings, the honest alternative isn’t another dividend fund; it’s asking whether broad-market plus a cash bucket does the job.
This page is for educational purposes only and is not investment advice. Fund facts were verified at iShares (BlackRock Canada)'s published fact sheets and product pages on June 10, 2026; holdings and weights are point-in-time and drift between rebalances; published MERs may lag recent fee changes (page as of Jun 9, 2026). We deliberately do not compare or project returns. Read the fund facts document before buying. See our methodology.