# XEI - S&P/TSX Equity Income Index Fund



## fortunate_son (Jan 3, 2011)

In April, iShares introduced a new dividend-focused ETF, XEI. This ETF is based on the S&P/TSX Equity Income Index:



> The S&P/TSX Equity Income Index is a strategy index focused on dividend income. The index is made up of 50 to 75 stocks selected from the S&P/TSX Composite, the headline index and principal broad market measure for the Canadian equity market.


What I find confusing is that iShares already has an established dividend ETF, XDV. The biggest difference that I can see is XEI has 75 holdings, while XDV only has 30.

Does anyone see other meaningful differences between these ETFs, or why one would be advantageous over the other?


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## webber22 (Mar 6, 2011)

XEI adds a lot more risk to your capital but also increases the yield slightly. They did this by adding lower quality stocks like YLO, JE, PBN, etc. Also, some people might not like return-of-capital distributions present in some of these stocks.


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## Jungle (Feb 17, 2010)

If an investor is looking at holding funds with risky companies such as YLO, you might as well look at some junk bond etfs. Probably get higher yield and the fund's price moves up with the benchmarks.


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