MoneySense.ca Forums: Canadian mutual funds: Re: Thoughts on new iunits Dividend ETF...: "I don't care for this ETF....not even a little bit. Notwithstanding the limited depth and breadth of dividend payers in the Canadian market to populate such a fund, I'm of the opinion that the selection and rebalancing methodology is flawed."
Good thing I just bought that fund. Doh. Apparently it's geared towards retirees. XIU & XTR seem to be a better mix, according to the people here.
You're generating capital gains that you might just as well keep sheltered by holding the positions constant and you could actually reduce the amount of dividends paid out, in the shorter term at least.
Thanks for the clarification. I agree, determining allocation by dividend rate rather than yield is strange. I had given this one some previouus consideration, but will be sure to steer clear now for that reason.
There must be some good words for XDV....