Investing · ETF deep dive
XEI iShares S&P/TSX Composite High Dividend Index ETF
The balanced version of the yield play: 75 names, weights clustered near 5%, and the highest headline yield of the cap-weighted trio.
Best for: Income investors who want VDY’s idea with less single-name and single-sector risk
Pros
- Highest verified distribution yield of the six (3.60%) with a 3.55% trailing figure to back it
- Top names sit near ~5% each — no Royal-Bank-sized bets
- Meaningful utilities sleeve (12.8%) adds a third income pillar
Cons
- Still ~62% financials + energy — balanced is relative
- 0.22% MER, double XDIV’s sticker
- High-yield screens carry the usual dividend-trap exposure
What's inside XEI
| Underlying fund | Weight |
|---|---|
| Royal Bank of CanadaRY | 5.6% |
| Toronto-Dominion BankTD | 5.6% |
| TC EnergyTRP | 5.1% |
| Suncor EnergySU | 4.9% |
| EnbridgeENB | 4.9% |
Financials 32.8% · Energy 29.6% · Utilities 12.8% (Provider sector table, Jun 9, 2026) · holdings as of June 9, 2026 (75 holdings; top 10 = 46.8%)
The deep dive
XEI slices the highest-yielding ~75 members from the S&P/TSX Composite, and its top weights clustering near 5% (RY 5.6%, TD 5.6%, TRP 5.1%) give it the flattest profile of the cap-weighted yield funds — top-10 concentration of 46.8% versus VDY’s 67.5%. The trade: you still own the same banks and pipelines, just less violently.
For a retiree building monthly income, XEI’s case is the combination: highest verified yield of the six, real (if partial) diversification across 75 names and three income sectors, all at the standard 0.22% sticker. It is the sensible centre of this category.
The rest of the field
The rest of the field, one line each:
- VDY — yield-ranked, bank/energy-heavy
- XDIV — quality screen, 0.11% MER, 21 stocks
- CDZ — dividend-growth Aristocrats, 96 names
- XDV — 30-stock concentrate, bank-heavy
- ZDV — BMO rules-based blend
Frequently asked questions
What does XEI hold?
XEI holds 75 high-yield S&P/TSX Composite members — led by Royal Bank of Canada (RY) at 5.6%, Toronto-Dominion Bank (TD) at 5.6%, TC Energy (TRP) at 5.1% (as of June 9, 2026 (75 holdings; top 10 = 46.8%)). Sector mix: Financials 32.8% · Energy 29.6% · Utilities 12.8% (provider sector table, jun 9, 2026). Weights drift between rebalances — s&p/tsx composite high dividend index — the high-dividend slice of the composite.
What does XEI cost?
Currently 0.20% management fee; 0.22% 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 XEI'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
If you want one Canadian dividend ETF and no homework, XEI is the defensible default. The cheaper-but-thinner alternative is XDIV; the genuinely diversified one is CDZ.
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.