Investing · ETF deep dive
XDV iShares Canadian Select Dividend Index ETF
A 30-stock, bank-led concentrate whose eye-catching “4.98% yield” is also a lesson in reading yield definitions.
Best for: Bank-bull income investors who want a curated 30-name list — and read footnotes
Pros
- Dow Jones screen weighs dividend growth and payout ratio, not just yield
- Two decades of history (2005)
- Canadian Tire at 7.3% shows it’s not literally all banks
Cons
- The "4.98%" distribution yield annualizes one payment — the 12-month trailing figure is 3.32%
- 0.55% MER for 30 stocks
- 53% financials — the most bank-led portfolio of the six
What's inside XDV
| Underlying fund | Weight |
|---|---|
| Royal Bank of CanadaRY | 8.8% |
| Bank of MontrealBMO | 8.5% |
| Canadian TireCTC.A | 7.3% |
| Toronto-Dominion BankTD | 5.6% |
| Bank of Nova ScotiaBNS | 5.4% |
Financials 53.1% · Energy 11.0% — six of the top ten are banks or insurers (Provider sector table, Jun 9, 2026) · holdings as of June 9, 2026 (30 holdings; top 10 = 57.4%)
The deep dive
XDV’s page is the best classroom in the category for a trap every income investor must learn: it shows a 4.98% “distribution yield” beside a 3.32% “12-month trailing yield.” The first annualizes the most recent monthly payment; the second sums what holders actually received over a year. When the two diverge this much, trust the trailing figure — and apply that test to every yield you’re ever quoted.
The fund itself is the Dow Jones Canada Select screen: 30 names picked on dividend growth, yield and payout ratio, weighted to produce a bank-and-insurer core (53% financials) with Canadian Tire as the famous odd one out. It’s a reasonable concentrate with real history — but at 0.55% for 30 large caps, both XDIV (cheaper, quality-screened) and XEI (broader, higher trailing yield) ask hard questions of it.
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
- CDZ — dividend-growth Aristocrats, 96 names
- ZDV — BMO rules-based blend
Frequently asked questions
What does XDV hold?
XDV holds 30 stocks via the Dow Jones Canada Select screen — led by Royal Bank of Canada (RY) at 8.8%, Bank of Montreal (BMO) at 8.5%, Canadian Tire (CTC.A) at 7.3% (as of June 9, 2026 (30 holdings; top 10 = 57.4%)). Sector mix: Financials 53.1% · Energy 11.0% — six of the top ten are banks or insurers (provider sector table, jun 9, 2026). Weights drift between rebalances — dow jones canada select dividend index — 30 names screened on dividend growth, yield and payout ratio.
What does XDV cost?
Currently 0.50% management fee; 0.55% 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 XDV'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
Fine fund, instructive yield display, tough modern competition from its own siblings. Read the trailing yield, then read XDIV’s.
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.