With its new lineup, the fund provider is shoring up a popular ETF series
iShares, BlackRock Canada’s ETF business, has launched a new suite of MSCI Quality Dividend ETFs to expand its Core series.
“The iShares Core funds continue to be embraced by individual investors, advisors, and institutions alike,” said Warren Collier, head of iShares at BlackRock Canada. “The addition of the new Core dividend funds will provide Canadians with a comprehensive set of options to satisfy their income needs.”
According to the firm, more than 50% of Canadian ETF flows have gone into core exposures throughout the ETF sector since the iShares Core funds were introduced to Canadians in March 2014.
Offering Canadian investors low-cost access to high-quality companies and above-average dividend yields, the five new funds provide exposure to Canadian, US, and global portfolios:
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Ticker
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Fund Name
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Management Fee
|
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XDIV
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iShares Core MSCI Canadian Quality Dividend Index ETF
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0.10%
|
|
XDU
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iShares Core MSCI US Quality Dividend Index ETF
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0.14%
|
|
XDG
|
iShares Core MSCI Global Quality Dividend Index ETF
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0.20%
|
|
XDUH
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iShares Core MSCI US Quality Dividend Index ETF (CAD-Hedged)
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0.14%
|
|
XDGH
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iShares Core MSCI Global Quality Dividend Index ETF (CAD-Hedged)
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0.20%
|
XDIV, XDU, and XDG are already listed on the TSX. The anticipated listing date for XDUH and XDGH, both Canadian-hedged offerings, is June 16.
The new ETFs will seek to replicate MSCI high-dividend-yield indices, investing in companies with stable or growing dividends. To ensure income sustainability, holdings will be screened based on metrics such as return on equity and low earnings variability.
iShares is also supplementing its core series with two existing fixed-income funds. In conjunction with the move, those two funds have been renamed:
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Ticker
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Old Fund Name
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New Fund Name
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XBB
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iShares Canadian Universe Bond Index ETF
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iShares Core Canadian Universe Bond Index ETF
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XSB
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iShares Canadian Short Term Bond Index ETF
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iShares Core Canadian Short Term Bond Index ETF
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