Investing · ETF deep dive
ZDV BMO Canadian Dividend ETF
The middle path: BMO’s own three-factor rules (growth, yield, payout ratio) across 68 names, with a quirky gold sleeve and the lowest yield of the six.
Best for: Investors who want a balanced rules-based blend and don’t mind a proprietary index
Pros
- Three-factor screen (3-year dividend growth, yield, payout ratio) is more thoughtful than pure yield-ranking
- 68 holdings with moderate concentration (top-10 44.5%)
- Mid-pack 0.39% MER; small US sleeve (2.4%) and gold-miner exposure others lack
Cons
- Lowest verified yield of the six (2.81%) — and no trailing-yield figure published
- Proprietary BMO methodology, not a third-party index you can audit
- Neither the cheapest, broadest, nor highest-yielding — the everything-second fund
What's inside ZDV
| Underlying fund | Weight |
|---|---|
| Royal Bank of CanadaRY | 8.2% |
| Toronto-Dominion BankTD | 7.1% |
| EnbridgeENB | 5.1% |
| Bank of Nova ScotiaBNS | 4.8% |
| CIBCCM | 4.6% |
Financials 36.9% · Energy 25.4% · Materials 9.6% — the only one with meaningful gold exposure (Provider sector table, Jun 9, 2026) · holdings as of June 9, 2026 (68 holdings; top 10 = 44.5%, computed from BMO’s daily holdings file)
The deep dive
ZDV runs BMO’s own rules — three-year dividend growth rate, yield and payout ratio, plus liquidity screens — producing a 68-name portfolio that sits between the categories: more diversified than VDY/XDV, more bank-led than CDZ, cheaper than both iShares actives, pricier than XDIV. Its fingerprint is the 9.6% materials sleeve (Agnico Eagle in the top 10) — the only gold exposure in the category — plus a token 2.4% US sleeve.
The honest knock: at a verified 2.81% annualized distribution yield — lowest of the six, with no trailing figure published to cross-check — ZDV asks you to accept the least income for a blend that wins no single category. Its best argument is temperamental: nothing about it is extreme.
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
- XDV — 30-stock concentrate, bank-heavy
Frequently asked questions
What does ZDV hold?
ZDV holds 68 stocks via BMO’s three-factor dividend screen — led by Royal Bank of Canada (RY) at 8.2%, Toronto-Dominion Bank (TD) at 7.1%, Enbridge (ENB) at 5.1% (as of June 9, 2026 (68 holdings; top 10 = 44.5%, computed from BMO’s daily holdings file)). Sector mix: Financials 36.9% · Energy 25.4% · Materials 9.6% — the only one with meaningful gold exposure (provider sector table, jun 9, 2026). Weights drift between rebalances — proprietary rules: 3-year dividend growth, yield and payout ratio, with liquidity screening.
What does ZDV cost?
Currently 0.35% management fee; 0.39% 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 ZDV'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
A perfectly sane middle pick that’s hard to make a first pick. Most readers land on XEI (yield + breadth) or XDIV (price) instead.
This page is for educational purposes only and is not investment advice. Fund facts were verified at BMO ETFs'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.