Vanguard FTSE Cdn High Div Yd. (VDY-T)

When you go for high-dividend payers in Canada you get the banks, insurance companies, pipelines, and some of the energy names. Yield will be a bit over 4%. A nice way to play.

Vanguard, iShares, and BMO all have offerings, but they all do it slightly differently. BMO has a covered call version, ZWC. There's ZDV, XDV, VDY. Take a look at them all and see what you like. All have different weights to the components. They're all equally good.

He likes XEI and VDY. Both pay ~5% yield. VDY is about 45% Canadian banks. XEI is a bit more diversified, with 23% Canadian banks as its top weighting.

For income, he prefers these to a covered call strategy. Though the covered call strategies look very attractive, they tend to underperform the underlying securities, especially in a rising equity market. Great if you need the income, but you'll get a better total return with the other.

Good holding with a bit of diversity and a bit of yield. Home-country bias for Canadian investors hasn't really worked out for the last couple of years, so good to add diversity like this one. Not the best in the world but, as a whole, likes it.

Excellent product with safe dividend. Good for long term investors. Good management team with low MER. 

Likes some of these solid, large-cap dividend names. Interest rate environment's on pause, likely to fall, beneficial for dividend-type stocks. Excellent name to own, nothing wrong with it. 22 bps. He owns XEI, similar strategy. 

Holds banks as the top weighting, which he has no problem with, as many of the banks are undervalued now. Likes this approach. Note that 46% of the portfolio is made up of banks. Yield is 5.2%.

VCN is an all cap with about 175 stocks. VDY focuses on dividend payers, so it has banks and oil and the like. 

The choice is do you want basic growth or do you want income? VDY for income. VCN for more growth and better diversification.

He likes XHU-T, VDY-T and XEI-T, which he owns. All include financials and pipelines.

VDY vs. VRE when buying dips We just had a dip on Friday and you have to pounce on them. It's hard. You need to find a stock that trades in a channel, then buy when it hits the bottom of that channel. The TSX is weighted in the VDY. He prefers VDY given the underperformance of Canadian banks in VRE.

VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.