BMO Canadian Dividend ETF (ZDV.TO)

Paying about 4% and the MER is about 35 basis points. Has a fair bit of oil in it. No problem with this.

Had held this, but then switched to BMO Low Volatility, Cdn Equity (ZLB-T), which has a lower yield, but much more market performance. However, this one is not a bad investment. Throws off a pretty reasonable yield. The mix of stocks in there is quite good. (See Top Picks.)

You have to remember that one of the areas of the market that is really expensive is the dividend area. If interest rates and inflation start to pick up, you have to be very cognizant of the exposure of the underlying holdings that you have. However, you really can’t go wrong with this. Great core holdings if you are not too picky about what you own.

If we are cautious on the marketplace, dividends are all very, very important. Looking back on any portfolio, you will find the dividend has made up a good portion of the rate of return. This is a really good dividend ETF.

(Market Call Minute.) He like this. The only issue is that this ETF is about 35% exposed to the energy complex. A little higher than what you would want.

BMO Canadian Dividend ETF (ZDV-T) or iShares 1-5 Yr Ladder Corp Bond ETF (CBO-T) for income, not so much increase, but also for a big downturn? He would go half and half. However this one is not a utility index, but the largest Canadian companies that are paying dividends and have a tendency to grow. This is good and a defensive position on the Canadian markets.

As a basket you probably can’t get anything that is better. This one is clinging around support at around $16.40. Chart shows an upward trend from late 2011 and he can’t see too much downside, maybe $1-$2, at worse while you are getting the dividend. If you don’t own it, buy half and see what happens and buy more when it breaks out.

Low volume does not matter because they can create more units as demand increases. It slid off in June and that was the talk of rates. Would not read much into it in terms of analysis.

He has purchased this because it is a little bit better diversified than the XDV which has more financials in it. He does a lot of Covered Calls on banks so he doesn’t want a dividend ETF that has a lot of banks and it. This is really a long-term hold investment.

Likes this one a great deal but does not consider it a proxy for the broad Canadian market because it is very much based on financials and dividend paying stocks.

Insurance is the biggest sector in this ETF. ZDV has a beta of slightly more than one, so it is higher risk. It holds just the Canadian Market and you should be more diversified than that.

This is his preferred dividend ETF in the Cdn market.