# buy XEI?



## jargey3000 (Jan 25, 2011)

not that i always follow Stockchase recs., but saw following rec. for XIE this morning. Is it a good time buy, for someone looking for a long-term divvy ETF.?(I'm sure I'll get a consensus opinion here...as always):




iShares S&P/TSX Equity IncomeTOP PICK XEI-T
1d $18.38
-0.04 (0.22%)​

Provides a good opportunity for investors who want strong dividend income with established Canadian companies, but don't want a lot of risk. Top holdings are in pipelines, banks, utilities and telecoms. Still down 14% YTD, so represents a good buying opportunity. High quality companies. Low MER. Yield is 5.64%.


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## agent99 (Sep 11, 2013)

I would check the break-down of the distribution yield. At that rate, it likely includes a fair amount of ROC. Not taxed as dividend income if in a taxable account. ROC amount may depend on market growth and options trading. Looks like it might have been about 86% dividends in past years, which is not bad, I guess. 
If you already own some of the major stocks the fund owns, then maybe adding to those would provide the income you desire and you are then in control of just what you own.

I read somewhere recently, that equity ETFs and especially index funds are a way fund companies can market the good with the junk. So maybe look at what this fund holds beyond the top 10 they show on their site.


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## scorpion_ca (Nov 3, 2014)

A picture is worth a thousand word....


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## james4beach (Nov 15, 2012)

scorpion_ca said:


> A picture is worth a thousand word....


Actually this isn't specific to XEI. Just about all dividend ETFs in Canada and the US have underperformed the index over recent years.

Of the various dividend ETFs though, I believe that *CDZ* has done the best at keeping up with the benchmark index performance. CDZ is also better diversified than XEI, so if I really had to buy a dividend ETF, that's what I'd buy.

Strictly speaking though, a person would be better off just holding the benchmark index XIC and selling amounts as needed to generate their own "dividend". This is also more tax efficient.


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## james4beach (Nov 15, 2012)

(delete duplicate)


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