# VDY - FTSE Canadian High Dividend Yield Index



## liquidfinance (Jan 28, 2011)

I've just been looking at this and before I work through all the holdings has anyone come to the conclusion on what the true yield of this etf should be given it's current composition?

Thanks


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## liquidfinance (Jan 28, 2011)

For anyone interested I found my answer

http://www.ftse.com/Analytics/FactSheets/Home/FactSheet/ProductRegions/HIGHDY/1/AMER/1?fromftse=true

4.32% is the magic number.

So the question now is when will the fund begin paying out close to this.


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## doctrine (Sep 30, 2011)

Some index. 5 of the top 6 are the big banks which make up 44% of the index. If you add banks, insurance and financial services, which are really all financial, they make up 58% of the weight. 

Not what you asked (you have your answer), but this is what I usually look at when I take a look at the index, to see what value is being provided.


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## Evets (Jul 16, 2017)

As a newcomer to considering ETF's in my portfolio, I'd like to get feedback on VDY as one of the dividend ETF's.

I've compared VDY to some of its alternatives such as XEI, ZDV, CDZ and XDV.

My analysis suggests VDY provides better long term gain at the lowest MER, supported by the largest trading volume, which I understand is another criterion for consideration.

I'd like some feedback on my rationale, and any suggestions or guidance experienced ETF investors care to offer this newbie.

Thanks!


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## dubmac (Jan 9, 2011)

What are you looking for in this purchase? Growth? Income? Alot of growth has already been built into the price.
The top ten holdings are all banks, telecoms, insurance. All of these have already increased over the past year - I doubt that there will be much more upside, but that's just my opinion.
It puts out a nice distribution - so a reasonable choice as an income source.


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## AltaRed (Jun 8, 2009)

A bit dated but 2021 Guide to Canadian Dividend ETFs has an opinion on the various dividend ETFs. Like post #5 has asked, what are you looking for? Income? Long term growth? Do not touch for 20 years? What else is in your portfolio, etc? It is hard to comment in isolation of knowing a bit more about intent.


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## Evets (Jul 16, 2017)

AltaRed said:


> .... Like post #5 has asked, what are you looking for? Income? Long term growth? Do not touch for 20 years? What else is in your portfolio, etc? .....





dubmac said:


> What are you looking for in this purchase? Growth? Income? A lot of growth has already been built into the price.
> The top ten holdings are all banks, telecoms, insurance. All of these have already increased over the past year - I doubt that there will be much more upside, but that's just my opinion.
> It puts out a nice distribution - so a reasonable choice as an income source.


Thank you both for your feedback and for your additional questions.

This is my TFSA portfolio, which, until now was sustained by GIC's. So now, I'd like to preserve my TFSA capital in retirement with judicious choices in investment to produce a bit of income and secondarily. moderate growth. 

I don't want to be greedy in my expectations, which is why I like the kind of holdings this category of ETF's contains.

At the moment, the rest of this portfolio contains Pembima (PMB). Algonquin Pwr (AQN), Trlud (T) and NW Healthcare REIT (NWH.UN).

I realize VDY has increased significantly in recent weeks / months. Is it overpriced now, should I jump in or wait for a pullback? Based on what I've shared, based on your experience, am I moving in the right direction?

Your feedback is appreciated!


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## dubmac (Jan 9, 2011)

Nobody has a crystal ball on markets. Jumping in or wading in or watching are your choices. I'm more of a wader.
Most people here will dollar-cost average - buy a little at a time - over a period of time. 
or...wait until (bank) earnings are posted - which will be in August.


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## agent99 (Sep 11, 2013)

I bought some XDV yesterday. Not a lot of thought went into it. I had $3000 cash in taxable account. XDV was trading at about $30.Bought 100  No trading fees on XDV (or many ETFs) at BMOIL, so using it as a sort of HISA  I did same with ZDV in my RRIF the other day. Love it when the transaction fee shows as $0.00


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