Investing · ETF showdown
XDIV vs VDY: which Canadian dividend ETF fits you?
Two of Canada's most popular dividend ETFs pay almost the same yield. The real differences are cost, how many stocks you own, and how much of your money sits in the big banks. Every figure here comes from the iShares and Vanguard Canada fund pages.
Head to head, 11 factors
| Factor | XDIV iShares | VDY Vanguard |
|---|---|---|
| Management fee | 0.10% | 0.20% |
| Published MER | 0.11% | 0.22% |
| Index | MSCI Canada High Dividend Yield 10% Security Capped | FTSE Canada High Dividend Yield |
| Number of holdings | 20 (Oct 29, 2026) | 58 (Sep 30, 2026) |
| Top-10 weight | 77.9% (Oct 29, 2026) | 69.6% (Sep 30, 2026) |
| Largest holding | Suncor 10.2% (10% single-stock cap at rebalance) | Royal Bank 15.8% |
| Distribution yield | 2.98% (Oct 28, 2026) | 2.97% (Sep 30, 2026) |
| 12-month trailing yield | 3.23% (Oct 28, 2026) | 3.11% (Sep 30, 2026) |
| Distributions | Monthly | Monthly |
| Net / total assets | $6.79B (Oct 29, 2026) | $8.96B |
| Launched | June 7, 2017 | November 2, 2012 |
Sources: iShares XDIV fund page and Vanguard VDY fund page, checked October 30, 2026. Vanguard publishes holdings monthly, so VDY's portfolio figures are as at September 30, 2026. We leave out past returns on purpose.
The real choice: concentration in banks vs in a few names
VDY ranks Canadian stocks by dividend yield and weights them by company size. That puts Royal Bank at 15.8% and TD at 11.1%, and the five big banks plus Enbridge and Canadian Natural make up much of the top 10 (69.6% combined). XDIV's index (the fund is named “Core MSCI Canadian Quality Dividend”) caps any stock at 10% when it rebalances. The result is a flatter top but only 20 holdings, with a top 10 worth 77.9% of the fund. Roughly 47% of XDIV sits in financials (heavy on insurers like Manulife and Sun Life) and about 31% in energy, based on the October 29 holdings file.
Cost and income
XDIV's 0.11% MER is half of VDY's 0.22%. That is about $110 a year on $100,000. Yields are close: both show distribution yields near 3% and pay monthly, which suits a retiree drawing income. Compare them with the rest of the field on our best dividend ETFs page, or read the full profiles for XDIV and VDY.
Where they fit in a retirement plan
Both are 100% Canadian stocks, so neither is a complete portfolio. Many retirees pair a dividend ETF with a global fund (see VEQT vs XEQT vs ZEQT) or bonds (best bond ETFs). Our ETFs for retirees and dividend investing guides explain how much to lean on dividends. Buy either at a commission-free broker.
Frequently asked questions
XDIV or VDY — which is better?
Neither wins outright; they solve different problems. XDIV costs half as much (0.11% vs 0.22% MER) and caps any single stock at 10% at each rebalance, but holds only about 20 companies. VDY holds 58 stocks but lets Royal Bank and TD alone make up about 27% of the fund. If concentration in the big banks bothers you, XDIV. If you want more names and the bigger, older fund, VDY.
Which pays the higher dividend?
They are close. On the providers’ own figures, XDIV shows a 2.98% distribution yield and 3.23% 12-month trailing yield (as of Oct 28, 2026); VDY shows 2.97% and 3.11% (as of Sep 30, 2026). The dates differ, so treat that as a tie. Both pay monthly. Model the income with the dividend income calculator.
How different are the holdings?
Both lean on financials and energy. XDIV’s largest weights on Oct 29, 2026 were Suncor (10.2%), Canadian Natural (9.9%), TD (9.6%), Manulife (9.3%) and Royal Bank (8.8%). VDY’s on Sep 30, 2026 were Royal Bank (15.8%), TD (11.1%), BMO (6.8%), Scotiabank (6.4%) and Enbridge (5.9%). XDIV is more insurer- and oil-heavy; VDY is more bank-heavy.
Does the MER gap matter?
It is real but small: 0.11 percentage points a year, about $110 on every $100,000 invested. Over decades it compounds — run it through the MER calculator — but holdings and concentration should drive this choice more than fees.
Which account should I hold them in?
Both pay Canadian eligible dividends, which get the dividend tax credit in a non-registered account. Inside a TFSA the income is tax-free; inside an RRSP/RRIF it is taxed as regular income on withdrawal. Our asset location guide covers where dividend ETFs fit best.
This page is for education only and is not investment advice. Fund facts were read from the provider pages on October 30, 2026; holdings and yields change daily. Read each fund's documents before buying. See our methodology.