XIU is one of the largest and earliest ETFs in Canada.
The fund was created in 1990 with the intention to replicate the performance of the S&P/TSX 60 Index, net of expenses. Not many indexes are following the TSX60 and it happens to be a good one to follow like the S&P500.
Pros of iShares XIU ETF
It is a low-cost ETF.
iShares XIU is a diversified fund across 60 large-cap companies and all ten industries.
It seeks long-term capital growth.
XIU has more liquidity when compared to other Canadian ETFs.
Cons of iShares XIU ETF
Heavy weightage on the top three industries that make up ~60% of the ETF’s total assets.
iShares XIU ETF Facts
Inception Date: September 28, 1999
Benchmark: S&P/TSX 60 Index
Net Assets: $9,908M
MER: 0.18%
12 Month Trailing Yield: 2.72%
Distribution Yield: 2.68%
Dividend Schedule: Quarterly
iShares XIU MER – Management Expense Ratio
At 0.18%, XIU has an excellent MER but you can have a cheaper MER with the Horizon HXT ETF at 0.03%.
The MER is what Blackrock takes to manage the fund for you. It’s much cheaper than mutual funds and in some cases cheaper than investing on your own.
Mutual funds can charge over 2% and it robs you of your returns. It’s time to ditch your mutual funds and switch to ETF ASAP. Many brokers such as Questrade offer free ETFs.
iShares XIU Performance
iShares XIU has a good performance compared with the TSX index but still falls short of the SP500.
The annual rate of return for iShares XIU ETF since inception is 7.39%. When you compare with my annual ROR of 14.40%, there is a big difference. Just look at the S&P500 index to get a different perspective.
Take your TFSA account as an example. The rules are the same for everyone and I mean everyone. The growth is ultimately a factor of your investment performance provided you make your TFSA contribution limit every year. The annual performance of an ETF matters as you can see below the growth over 20+ years.
wdt_ID
Year
Yearly Limit
Cumulative
5% Growth
10% Growth
Dividend Earner
Spousal
1
2009
5,000
5,000
5,250
5,500
Not Tracked
Not Started
2
2010
5,000
10,000
10,762
11,550
Not Tracked
Not Started
3
2011
5,000
15,000
16,550
18,205
Not Tracked
Not Started
4
2012
5,000
20,000
22,628
25,525
Not Tracked
Not Started
5
2013
5,500
25,500
29,534
34,128
$41,742
Not Started
6
2014
5,500
31,000
36,786
43,590
$52,820
Not Started
7
2015
10,000
41,000
49,125
58,949
$56,307
Not Started
8
2016
5,500
46,500
57,356
70,984
$70,200
Not Started
9
2017
5,500
52,000
65,999
84,034
$78,900
$13,308
10
2018
5,500
57,500
75,074
98,487
$96,937
$58,818
11
2019
6,000
63,500
85,128
114,986
$129,467
$82,596
12
2020
6,000
69,500
95,684
133,030
$153,993
$95,906
13
2021
6,000
75,500
106,769
152,933
$181,601
$113,194
14
2022
6,000
81,500
118,407
174,827
$169,702 YTD
$128,018 YTD
15
2023
6,500
88,000
131,152
199,459
16
2024
6,500
94,500
144,536
226,555
17
2025
6,500
101,000
158,587
256,361
18
2026
6,500
107,500
173,342
289,147
19
2027
7,000
114,500
189,359
325,762
20
2028
7,000
121,500
206,177
366,038
21
2029
7,000
128,500
223,836
410,342
22
2030
7,500
136,000
242,902
459,626
23
2031
7,500
143,500
262,923
513,838
24
2032
7,500
151,000
283,944
573,472
25
2033
7,500
158,500
306,016
639,069
26
2034
7,500
166,000
329,192
711,226
27
2035
7,500
173,500
353,526
790,599
28
2036
7,500
181,000
379,078
877,909
29
2037
7,500
188,500
405,906
973,950
30
2038
7,500
196,000
434,077
1,079,595
iShares XIU ETF Top 10 Holdings
Below are the holdings part of the XIU ETF at the time of writing sorted by market capitalization. The ratio of weigth can fluctuate on any months at the discretion of the fund manager in accordance with the fund target.
TickerKey
Ticker
Company
Sector
Industry
Score
Quote
Market Cap
P/E
FPE
EPS
Yield
PayoutRatio
Payments
Dividend
Chowder
GrowthRating
IncomeRating
Tollbooth
Ambassador
Achiever
Aristocrat
King
Country
Graph
TSE:RY
RY
Royal Bank
Financial Services
Banks - Diversified
58.22
131.18
186.77
13.33
13.33
9.98
3.2900
43.9000
4
4.32
10.1400
6
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:TD
TD
TD Bank
Financial Services
Banks - Diversified
66.99
86.27
156.61
11.11
11.11
6.72
3.6600
40.6000
4
3.16
12.8900
7
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:BAM.A
BAM.A
Brookfield Asset Management
Financial Services
Asset Management
47.70
71.24
111.91
32.80
32.80
2.20
0.9200
21.1000
4
0.52
8.5000
7
6
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:ENB
ENB
Enbridge
Energy
Oil & Gas Midstream
64.93
49.28
99.36
16.45
16.45
2.52
6.7800
110.0000
4
3.34
17.1000
6
8
Tollbooth - Unregulated
YES
YES
YES
NO
Canada
1
TSE:BNS
BNS
Scotia Bank
Financial Services
Banks - Diversified
62.42
81.03
98.09
13.06
13.06
6.27
4.4400
57.2000
4
3.60
10.1200
6
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:CNR
CNR
Canadian National Railway
Industrials
Railroads
67.61
134.15
95.22
23.80
23.80
5.53
1.8300
41.8000
4
2.46
13.5400
6
7
Tollbooth - Unregulated
YES
YES
YES
NO
Canada
1
TSE:BMO
BMO
Bank of Montreal
Financial Services
Banks - Diversified
53.30
127.99
83.28
14.04
14.04
10.45
3.3100
46.5000
4
4.24
7.5500
5
7
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:TRI
TRI
Thompson Reuters
Industrials
Consulting Services
44.67
145.44
71.14
8.36
8.36
2.51
1.4000
11.2000
4
1.62
3.9600
3
7
Intermediate
NO
YES
YES
NO
Canada
1
TSE:CM
CM
CIBC
Financial Services
Banks - Diversified
57.25
149.13
66.39
12.57
12.57
12.67
3.9200
49.1000
4
5.84
8.5500
6
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:CP
CP
Canadian Pacific Railway
Industrials
Railroads
58.71
89.76
60.56
18.58
18.58
3.76
0.8500
15.6000
4
0.76
13.7500
5
5
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:TRP
TRP
TC Energy
Energy
Oil & Gas Midstream
64.24
60.45
58.86
29.47
29.47
4.33
5.7600
165.2000
4
3.48
13.0700
6
8
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:BCE
BCE
BCE
Communication Services
Telecommunication Services
49.27
64.44
57.95
20.05
20.05
3.21
5.4300
113.4000
4
3.50
10.5100
5
7
Tollbooth - Regulated
NO
YES
YES
NO
Canada
1
TSE:ATD.B
ATD.B
Alimentation Couche-Tard Inc.
Consumer Defensive
Grocery Stores
71.15
51.46
54.79
16.82
16.82
3.12
0.6800
9.9000
4
0.35
27.9600
10
6
Consumable - Necessities
YES
YES
YES
NO
Canada
1
TSE:MFC
MFC
Manulife
Financial Services
Insurance - Life
72.59
25.18
49.45
6.91
6.91
3.12
4.4500
30.7000
4
1.12
12.4200
7
7
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:CNQ
CNQ
Canadian Natural Resources
Energy
Oil & Gas E&P
77.49
40.49
48.93
11.76
11.76
2.28
4.6400
51.9000
4
1.88
17.7100
6
8
Intermediate
YES
YES
YES
NO
Canada
1
TSE:NTR
NTR
Nutrien Ltd
Basic Materials
Agricultural Inputs
41.54
78.26
45.44
37.15
37.15
3.47
2.9600
108.0000
4
1.84
2.9600
4
4
Intermediate
NO
NO
NO
NO
Canada
1
TSE:ABX
ABX
Barrick Gold
Basic Materials
Gold
49.37
25.37
45.14
14.33
14.33
1.70
1.7900
24.6000
4
0.36
1.7900
2
5
Intermediate
NO
NO
NO
NO
Canada
1
TSE:CSU
CSU
Constellation Software
Technology
Software - Application
25.59
2067.01
43.59
100.30
100.30
56.24
0.2400
24.4000
4
4.00
5.3000
3
2
Intermediate
NO
NO
NO
NO
Canada
1
TSE:WCN
WCN
Waste Connections Inc
Industrials
Waste Management
59.95
159.83
41.36
53.63
53.63
3.70
0.6500
25.1000
4
0.82
15.6200
8
6
Tollbooth - Unregulated
YES
YES
NO
NO
Canada
1
TSE:SLF
SLF
Sun Life Financial
Financial Services
Insurance - Diversified
56.54
66.58
39.07
11.79
11.79
5.86
3.3000
38.8000
4
2.20
7.6300
6
6
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:QSR
QSR
Restaurant Brands International Inc.
Consumer Cyclical
Restaurants
51.46
81.97
37.84
0.00
0.00
3.21
3.2600
95.5000
4
2.12
41.9300
7
4
Consumable - Discretionary
NO
NO
YES
NO
Canada
1
TSE:FNV
FNV
Franco-Nevada Corp
Basic Materials
Gold
45.95
193.04
37.01
43.58
43.58
4.35
0.7800
30.5000
4
1.20
5.0000
6
5
Intermediate
YES
YES
YES
NO
Canada
1
TSE:T
T
Telus
Communication Services
Telecommunication Services
56.58
28.74
36.51
30.58
30.58
1.03
4.4000
130.5000
4
1.27
10.9100
7
6
Tollbooth - Regulated
NO
YES
YES
NO
Canada
1
TSE:SU
SU
Suncor
Energy
Oil & Gas Integrated
42.82
23.72
35.66
23.74
23.74
0.68
3.5400
84.5000
4
0.84
3.5400
1
4
Consumable - Necessities
NO
NO
NO
NO
Canada
1
TSE:NA
NA
National Bank
Financial Services
Banks - Diversified
59.29
96.39
32.65
12.98
12.98
7.75
2.9500
38.0000
4
2.84
9.7900
6
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:MG
MG
Magna International Inc
Consumer Cyclical
Auto Parts
48.96
107.45
32.34
11.88
11.88
10.13
2.0200
23.0000
4
1.72
14.7200
3
3
Durable
NO
NO
YES
NO
Canada
1
TSE:RCI.B
RCI.B
Rogers
Communication Services
Telecommunication Services
40.75
63.37
32.26
19.74
19.74
3.60
3.1600
62.2000
4
2.00
3.9800
1
4
Tollbooth - Regulated
NO
NO
NO
NO
Canada
1
TSE:L
L
Loblaw
Consumer Defensive
Grocery Stores
46.25
87.21
29.78
22.24
22.24
5.04
1.6700
33.3000
4
1.46
5.9800
5
6
Consumable - Necessities
NO
NO
YES
NO
Canada
1
TSE:BIP.UN
BIP.UN
Brookfield Infrastructure Partners
Utilities
Utilities - Diversified
34.34
71.59
29.55
0.00
0.00
1.68
3.5900
126.1000
4
2.04
7.2800
4
2
Tollbooth - Regulated
NO
NO
NO
NO
Canada
1
TSE:FTS
FTS
Fortis
Utilities
Utilities - Regulated Electric
57.55
58.79
27.43
22.33
22.33
2.66
3.4400
75.5000
4
2.02
9.0800
5
7
Tollbooth - Regulated
NO
YES
YES
NO
Canada
1
TSE:POW
POW
Power Corporation
Financial Services
Insurance - Life
45.43
42.47
26.37
10.77
10.77
4.25
4.2100
45.3000
4
1.79
10.8200
4
2
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:WPM
WPM
Wheaton Precious Metals Corp
Basic Materials
Gold
50.26
55.69
25.05
31.60
31.60
1.75
1.3600
34.7000
4
0.60
9.7300
5
3
Intermediate
NO
NO
YES
NO
Canada
1
TSE:IMO
IMO
Imperial Oil
Energy
Oil & Gas Integrated
55.31
33.17
24.08
0.00
0.00
1.06
3.2600
0.0000
4
1.08
10.6800
5
8
Consumable - Necessities
NO
YES
YES
NO
Canada
1
TSE:PPL
PPL
Pembina Pipeline
Energy
Oil & Gas Midstream
62.42
40.26
22.27
0.00
0.00
-0.87
6.2600
0.0000
12
2.52
11.1700
7
9
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:CVE
CVE
Cenovus Energy
Energy
Oil & Gas Integrated
19.09
9.93
20.76
0.00
0.00
-0.63
0.7000
88.8000
4
0.07
0.7000
0
3
Intermediate
NO
NO
NO
NO
Canada
1
TSE:WN
WN
George Weston Limited
Consumer Defensive
Grocery Stores
37.50
134.06
20.11
32.35
32.35
7.75
1.7900
51.9000
4
2.40
5.7800
5
4
Consumable - Necessities
NO
NO
YES
NO
Canada
1
TSE:FM
FM
First Quantum Minerals Ltd.
Basic Materials
Copper
29.28
26.15
18.37
45.17
45.17
0.81
0.0400
1.6000
2
0.01
0.0400
2
3
Intermediate
NO
NO
NO
NO
Canada
1
TSE:OTEX
OTEX
Open Text Corporation
Technology
Software - Application
43.54
67.18
18.21
47.26
47.26
4.29
1.6600
67.8000
4
0.88
15.3000
5
3
Subscription
NO
NO
YES
NO
Canada
1
TSE:SJR.B
SJR.B
Shaw Communications
Communication Services
Telecommunication Services
38.33
36.54
18.20
20.53
20.53
1.78
3.2400
67.1000
12
1.19
3.3900
2
4
Tollbooth - Regulated
NO
NO
NO
NO
Canada
1
TSE:AEM
AEM
Agnico Eagle Mines
Basic Materials
Gold
67.22
74.17
18.05
19.21
19.21
3.58
2.3800
40.2000
4
1.40
20.4800
7
5
Intermediate
NO
NO
YES
NO
Canada
1
TSE:DOL
DOL
Dollarama Inc
Consumer Defensive
Discount Stores
51.53
57.92
17.69
30.55
30.55
1.90
0.3500
9.6000
4
0.20
6.6100
6
6
Consumable - Discretionary
YES
YES
YES
NO
Canada
1
TSE:MRU
MRU
Metro
Consumer Defensive
Grocery Stores
64.67
63.44
15.62
19.33
19.33
3.40
1.5800
28.9000
4
1.00
14.3500
8
6
Consumable - Necessities
YES
YES
YES
NO
Canada
1
TSE:TECK.B
TECK.B
Teck Resources
Basic Materials
Other Industrial Metals & Mining
12.48
28.00
15.27
96.96
96.96
1.94
0.7100
65.4000
4
0.20
0.7100
0
1
Intermediate
NO
NO
NO
NO
Canada
1
TSE:EMA
EMA
Emera
Utilities
Utilities - Diversified
60.66
59.15
15.15
24.35
24.35
2.92
4.3100
78.6000
4
2.55
9.4700
6
8
Tollbooth - Regulated
NO
YES
YES
NO
Canada
1
TSE:SAP
SAP
Saputo
Consumer Defensive
Packaged Foods
57.87
35.55
14.95
27.25
27.25
1.45
2.0300
53.5000
4
0.72
7.1700
6
6
Consumable - Necessities
NO
YES
YES
NO
Canada
1
TSE:CCL.B
CCL.B
CCL Industries Inc.
Consumer Cyclical
Packaging & Containers
63.59
71.33
12.87
21.39
21.39
3.48
1.1800
23.3000
4
0.84
17.2800
8
6
Intermediate
YES
YES
YES
NO
Canada
1
TSE:CTC.A
CTC.A
Canadian Tire Corporation, Limited
Consumer Cyclical
Specialty Retail
63.61
197.91
12.27
13.20
13.20
19.62
2.3700
0.0000
4
4.70
19.1000
7
7
Consumable - Discretionary
YES
YES
YES
NO
Canada
1
TSE:AQN
AQN
Algonquin Power & Utilitties Corp
Utilities
Utilities - Renewable
75.77
19.62
11.96
10.58
10.58
0.89
4.3800
0.0000
4
0.68
13.4000
8
8
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:CAR.UN
CAR.UN
Canadian Apartment Properties REIT
Real Estate
REIT - Residential
50.88
60.31
10.47
7.76
7.76
7.77
2.2900
17.7000
12
1.38
4.7700
1
229
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:GIL
GIL
Gildan Activewear Inc.
Consumer Cyclical
Apparel Manufacturing
29.48
48.90
9.53
21.06
21.06
2.41
1.5900
0.0000
4
0.62
1.5900
0
4
Consumable - Discretionary
NO
NO
NO
NO
Canada
1
TSE:IPL
IPL
Inter Pipeline Ltd
Energy
Oil & Gas Midstream
45.06
19.95
8.56
17.81
17.81
0.83
2.4100
42.9000
12
0.48
2.4100
2
4
Tollbooth - Unregulated
NO
NO
NO
NO
Canada
1
TSE:CCO
CCO
Cameco Corp.
Energy
Uranium
19.27
20.70
8.34
0.00
0.00
-0.25
0.3900
0.0000
1
0.08
0.3900
0
3
Intermediate
NO
NO
NO
NO
Canada
1
At the time of writing, Shopify is the most significant constituent in the XIU ETF.
The top 10 holdings account for almost 50% of the fund. So this ETF also provides a good way to invest in the Canadian banking sector.
iShares XIU ETF Sector Allocation
iShares XIU is heavily weighted towards the financials which is technically how the TSX is weighted. As a high dividend yield ETF, you should compare it with other dividend ETFs.
wdt_ID
Sector
Ratio
1
Financials
35.54
2
Utilities
3.22
3
Communication Services
5.79
4
Consumer Cyclical
4.31
5
Energy
14.14
6
Basic Materials
11.02
7
8
Industrials
10.30
9
Consumer Defensive
3.57
10
Real Estate
0.77
11
Cash
0.16
12
Technology
10.37
13
Healthcare
0.80
Why hold iShares XIU ETF
XIU beats all other Canadian Dividend ETF which makes it the best and you also get a decent yield.
In fact, if you look at the non-dividend reinvested chart, this is your TSX performance.
Without Dividend Re-InvestedWith Dividend Re-Invested
If you want the dividends, it’s not clear you will get dividend growth the same way the best banks and the best utility stocks will do for you.
DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.
DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.