Best Canadian Utilities ETFs

Canadian Utilities Etf

A number of readers have asked me about my views on dividend ETFs and Which Canadian dividend ETFs are available on the market today? Why did I ultimately choose to hold individual dividend shares instead of relying on a Canadian dividend ETF? Sources: 4

If you are looking for a solid combination of yield and low cost, VPU is an excellent choice. The Call Utilities ETF, which I covered in my previous post on the Canadian Dividend ETF market, is one of the best options available to any investor. Sources: 0, 6

The BMO Canadian Dividend ETF is designed to offer a yield-weighted portfolio of stocks that pay Canadian dividends. You can find out more about this exchange-traded fund on its website here. ETFs will trade from the date of March 5, 2021, which is in the same language as official filings with the US Securities and Exchange Commission. Sources: 7

ETFs that BMO has been offering for some time to track this sector: ZUT is an equal weighted ETF – utility ETF, ZQQ is a Canadian dollar – hedged ETF that tracks the Nasdaq 100, and ZUH is the Canadian dollar hedging US health fund. Vanguard also offers a variety of ETFs, including the Vanguard Canadian Utilities ETF and the VIX Canadian Fixed Income Fund. Canadian fixed income portfolio consisting of federal and provincial corporate bonds, with a focus on utilities, energy, real estate and financial services. Sources: 1, 9, 10

If you would like to invest in a number of Canadian providers but do not have the capital to buy them individually, try this ETF. ETF invests in 16 Canadian utilities, including Canadian Natural Gas, Canadian Power Generation and Canadian Hydroelectric Power. Sources: 8, 9

If you have a genuine aversion to financial and energy stocks and are willing to pay more, the broad Canadian equity ETF is the best choice. ETFs of Canadian banks are great, I think it’s much better to hold individual Canadian bank stocks than to rely on one sector – special ETFs. In this case, you could buy a basket ETF that effectively replicates the TSX in sectors you don’t want, but you can add sector ETFs to complement your investments in the broader ETF and invest in utility ETFs for Canada. If you are looking for more options, you should also explore the Canadian Energy ETF or Canadian Natural Gas ETF. Sources: 2, 4, 10

They have different selection criteria and if a stock falls outside the selection criteria it would not be part of the ETF. As a result, they hold only a limited number of shares, not all in the same portfolio. These investments are based on overall performance, so the share price of an ETF can fluctuate like any stock. Sources: 4, 7

If you want an ETF that tracks the Canadian market, focusing on dividend income and total returns, XIU is the best Canadian dividend ETF you should have in your portfolio. While you can hunt for high-yielding dividend shares, it is as easy to find a high-yielding and safe yield as it is on March 11, 2021. The fund trades at a price-earnings ratio of 0.01 and a dividend yield of 2.5%. Sources: 4, 7

The BMO US Dividend ETF (CAD) comprises the CAD Index ETF ZEF, which is hedged against the US Dollar and the US Dollar Index (USD). It is designed to deliver a return – weighted portfolios of Canadian dividend stocks that have an average annual dividend yield of 2.5% and a price-to-earnings ratio of 0.01. Sources: 7

Invesco’s Canadian Dividend Index ETF aims to replicate the performance of the Canadian Utilities Index (CDZ) as far as possible without fees or charges. The CDz ETF’s objective is to combine the long-term capital growth potential of the Canadian utilities sector with a dividend yield of 2.5% and a price-to-earnings ratio of 0.01. The Canadian Dividend Index Utility D (CUT) aims for long-term capital growth by replicating the returns of Canadian utility stocks with an average annual dividend yield of 1.7%. Sources: 3, 4

BMO Financial Group’s ETF business, founded in May 2009, is the leading ETF provider in Canada. The ETF is traded on the Toronto Stock Exchange under the ticker ETFBMO – REIT and the Canadian Dividend Index ETF. It pays an annual dividend of C $1.00, which corresponds to a dividend yield of 2.7% and a price-earnings ratio of 0.01. As of March 5, 2021, the Company has written off a total of $1,832,000 in dividends and $9.5 million in assets under management. Sources: 7

Canadian Utilities pays an annual dividend of C $1.00, which equates to a dividend yield of 2.7% and a price-to-earnings ratio of 0.01. Unfortunately, the Canadian utility does not generate enough cash to cover the dividend, and has paid out more than twice as much dividends as it has paid out in profits. Canadian utilities pay out less than half of the reported profit and unfortunately do not generate enough returns on invested capital to cover dividends. Sources: 5

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