RBC iShares ETFs are comprised of RBC ETFs managed by RBC Global Asset Management Inc. and iShares ETFs managed by BlackRock Asset Management Canada Limited ("BlackRock Canada").
Dividend ETFs are designed to provide regular income to investors by investing in a diversified basket of dividend-paying equities. The selection of stocks is based on the specifics of the dividend strategy. In addition to providing income, dividend ETFs can be used to achieve a variety of other investment objectives, such as stability, growth and total return.
Download the RBC iShares Dividend ETFs brochure >
Earn steady income
Dividend ETFs can provide a regular source of income and help investors meet current spending needs. Canadian dividends may be eligible for preferential tax treatment.
Reduce portfolio risk
Dividend ETFs may offer lower volatility and reduced downside risk relative to other equity strategies.
Seek total returns
Historically, dividends have been a key driver of equity returns. Dividend ETFs may help investors outpace inflation.
Explore RBC iShares Dividend ETFs
The iShares Core Quality Dividend ETFs invest in good quality companies that pay high and sustainable dividends. They are designed to be used as a portfolio’s core holdings, providing attractive dividend income and potential price appreciation. The ETFs charge low management fees, to help you keep more of what you earn.
Index methodology related to security selection considerations:
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Dividend yield
Only include securities with 1.3x or higher dividend yield than parent securities weighted by market cap.
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Dividend growth
Securities with a negative dividend per share growth rate over the past 5 years are excluded.
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Dividend sustainability
Securities that provide an excessively high or negative dividend payout are excluded.
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Quality
Companies that score poorly on quality metrics such as return on equity, earnings variability, and debt to equity are excluded.
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Avoid value traps
Securities ranked in the bottom 5% with negative 1-year price performance are excluded.
Selection of iShares Quality Dividend ETFs
RBC Quant Dividend Leaders ETFs are designed to be high-quality core dividend income solutions. The actively managed quantitative ETFs employ a systematic, multi-factor investment approach to build a portfolio of companies with strong balance sheets, sustainable dividends and the potential for dividend growth.
Focus on companies with exposure to specific fundamentals (i.e. factors) that help drive superior returns over time:
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Profitability
Assesses a firm’s ability to sustainably grow earnings, particularly for mature firms.
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Value
Can identify irrational investor behaviour and mispriced investment opportunities.
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Quality
Provides quantitative insight into management behaviour, balance sheet strength and innovation, and is a predictor of future earnings growth.
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Technical
Signals market movements before fundamental changes are apparent (also known as a momentum factor).
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Growth
Identifies companies that are growing their business.
Selection of RBC Quant Dividend Leaders ETFs
For investors focused on dividend yield, the following ETFs invest in companies that pay out high dividends yields.
Canada
iShares S&P/TSX Composite High Dividend Index ETF
iShares S&P/TSX Composite High Dividend Index ETF provides exposure to 50-75 Canadian stocks selected from the S&P/TSX Composite Index with a focus on high dividend yields.
iShares Canadian Select Dividend Index ETF
iShares S&P/TSX Composite High Dividend Index ETF provides exposure to 50-75 Canadian stocks selected from the S&P/TSX Composite Index with a focus on high dividend yields.
United States
iShares U.S. High Dividend Equity Index ETF
iShares U.S. High Dividend Equity Index ETF tracks the Morningstar Dividend Yield Focus Index and provides exposure to 75 high dividend-paying U.S. stocks. The Index screens to select companies with strong financial health and an ability to sustain high dividend payouts.
iShares U.S. High Dividend Equity Index ETF
A currency hedged version of this dividend strategy is also available through the iShares U.S. High Dividend Equity Index ETF (CAD-Hedged).
Global
iShares Global Monthly Dividend Index ETF
iShares Global Monthly Dividend Index ETF (CAD-Hedged) tracks the Dow Jones Global Select Dividend Composite Index, which selects the highest yielding companies globally. The Index also considers dividend growth and financial health for portfolio inclusion.
For investors focused on growth, the following ETFs invest in companies that have a history of sustained dividend growth and exhibit metrics that indicate future dividend growth potential.
Canada
iShares S&P/TSX Canadian Dividend Aristocrats Index ETF
iShares S&P/TSX Canadian Dividend Aristocrats Index ETF provides exposure to a portfolio of high-quality Canadian dividend-paying companies that have increased ordinary cash dividends every year for at least five consecutive years.
United States
iShares US Dividend Growers Index ETF
iShares US Dividend Growers Index ETF (CAD-Hedged) tracks the S&P High Yield Dividend Aristocrats CAD Hedged Index and provides exposure to high yielding U.S. companies that have increased dividends for at least 20 consecutive years.
Explore dividend strategies
Download “Low-Cost Core Dividend” brochure
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