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
$183,031
$144,633
15
2023
6,500
88,000
131,152
199,459
$199,648 YTD
$157,213 YTD
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
61.28
134.21
186.04
12.14
12.14
11.20
3.9300
44.6800
4
5.28
8.5800
5
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:TD
TD
TD Bank
Financial Services
Banks - Diversified
64.86
92.36
167.60
9.76
9.76
8.37
4.1600
37.5200
4
3.84
10.7400
5
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:CNR
CNR
Canadian National Railway
Industrials
Railroads
57.66
172.04
116.49
24.41
24.41
7.09
1.7000
39.7000
4
2.93
12.1000
6
4
Tollbooth - Unregulated
YES
YES
YES
NO
Canada
1
TSE:ENB
ENB
Enbridge
Energy
Oil & Gas Midstream
60.25
54.69
110.74
20.18
20.18
2.86
6.4900
125.8700
4
3.55
14.0500
7
8
Tollbooth - Unregulated
YES
YES
YES
NO
Canada
1
TSE:CP
CP
Canadian Pacific Railway
Industrials
Railroads
42.79
110.87
103.12
35.22
35.22
3.58
0.6900
25.4500
4
0.76
13.1900
5
3
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:BAM.A
BAM.A
Brookfield Asset Management
Financial Services
Asset Management
59.57
60.75
98.45
21.96
21.96
3.46
1.2400
25.7900
4
0.56
9.6900
7
4
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:BMO
BMO
Bank of Montreal
Financial Services
Banks - Diversified
66.76
134.38
90.99
6.72
6.72
13.25
4.2600
27.3100
4
5.72
8.1600
5
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:CNQ
CNQ
Canadian Natural Resources
Energy
Oil & Gas E&P
83.80
80.69
89.35
7.87
7.87
11.42
4.2100
41.2100
4
3.40
18.4400
8
7
Intermediate
YES
YES
YES
NO
Canada
1
TSE:BNS
BNS
Scotia Bank
Financial Services
Banks - Diversified
72.65
68.94
82.13
8.59
8.59
8.49
5.9800
50.3100
4
4.12
9.1300
5
10
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:TRI
TRI
Thompson Reuters
Industrials
Consulting Services
34.55
158.68
76.31
60.98
60.98
2.94
1.5100
81.8000
4
1.78
4.2200
3
3
Intermediate
NO
YES
YES
NO
Canada
1
TSE:TRP
TRP
TC Energy
Energy
Oil & Gas Midstream
61.96
58.19
58.89
17.94
17.94
4.25
6.1900
110.2600
4
3.60
13.7400
6
8
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:SU
SU
Suncor
Energy
Oil & Gas Integrated
49.35
43.00
58.22
7.76
7.76
7.40
4.8400
31.7300
4
2.08
4.8400
2
8
Consumable - Necessities
NO
NO
NO
NO
Canada
1
TSE:BCE
BCE
BCE
Communication Services
Telecommunication Services
58.59
63.65
58.05
20.60
20.60
3.40
5.7800
116.2900
4
3.68
10.8200
5
7
Tollbooth - Regulated
NO
YES
YES
NO
Canada
1
TSE:NTR
NTR
Nutrien
Basic Materials
Agricultural Inputs
52.56
107.00
56.00
5.67
5.67
17.56
2.4200
13.3300
4
1.92
2.4200
3
5
Intermediate
NO
NO
NO
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:CM
CM
CIBC
Financial Services
Banks - Diversified
57.07
59.39
53.81
8.89
8.89
7.05
7.7300
48.8300
4
3.40
10.8800
5
2
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:CVE
CVE
Cenovus Energy
Energy
Oil & Gas Integrated
45.76
26.84
51.50
10.37
10.37
2.38
1.5600
10.5500
4
0.42
1.5600
3
4
Intermediate
NO
NO
NO
NO
Canada
1
TSE:WCN
WCN
Waste Connections
Industrials
Waste Management
52.70
195.80
50.36
46.73
46.73
4.90
0.7000
42.6500
4
1.02
13.8400
7
3
Tollbooth - Unregulated
YES
YES
NO
NO
Canada
1
TSE:MFC
MFC
Manulife
Financial Services
Insurance - Life
74.87
24.41
45.98
6.51
6.51
3.06
5.4100
34.9200
4
1.32
13.8500
6
9
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:IMO
IMO
Imperial Oil
Energy
Oil & Gas Integrated
65.30
75.35
45.57
7.70
7.70
9.97
2.3400
13.2400
4
1.76
11.2100
6
5
Consumable - Necessities
NO
YES
YES
NO
Canada
1
TSE:CSU
CSU
Constellation Software
Technology
Software - Application
27.76
2147.73
45.51
70.01
70.01
73.17
0.2500
17.5600
4
4.00
0.2500
2
2
Intermediate
NO
NO
NO
NO
Canada
1
TSE:T
T
Telus
Communication Services
Telecommunication Services
72.28
28.60
40.62
19.72
19.72
1.19
4.9100
91.8000
4
1.40
11.4800
7
7
Tollbooth - Regulated
NO
YES
YES
NO
Canada
1
TSE:ABX
ABX
Barrick Gold
Basic Materials
Gold
43.68
22.86
40.28
15.98
15.98
1.26
2.3600
54.9900
4
0.40
2.3600
3
4
Intermediate
NO
NO
YES
NO
Canada
1
TSE:L
L
Loblaw
Consumer Defensive
Grocery Stores
45.51
122.28
39.69
19.28
19.28
6.58
1.3200
23.8700
4
1.62
6.5700
5
3
Consumable - Necessities
NO
YES
YES
NO
Canada
1
TSE:FNV
FNV
Franco-Nevada Corp
Basic Materials
Gold
50.90
195.88
37.54
36.96
36.96
4.71
0.8800
31.9400
4
1.28
6.8000
7
3
Intermediate
YES
YES
YES
NO
Canada
1
TSE:SLF
SLF
Sun Life Financial
Financial Services
Insurance - Diversified
65.16
63.54
37.26
11.71
11.71
6.11
4.5300
49.3900
4
2.88
8.8600
6
8
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:NA
NA
National Bank
Financial Services
Banks - Diversified
70.16
95.83
32.27
9.97
9.97
9.63
4.0500
36.8100
4
3.88
9.2400
6
7
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:AEM
AEM
Agnico Eagle Mines
Basic Materials
Gold
55.38
69.71
31.78
35.16
35.16
3.04
3.1000
110.7400
4
1.60
11.2400
7
4
Intermediate
NO
NO
YES
NO
Canada
1
TSE:RCI.B
RCI.B
Rogers
Communication Services
Telecommunication Services
30.86
62.24
31.57
19.99
19.99
3.56
3.2100
64.0500
4
2.00
4.0300
1
5
Tollbooth - Regulated
NO
NO
NO
NO
Canada
1
TSE:BIP.UN
BIP.UN
Brookfield Infrastructure Partners
Utilities
Utilities - Diversified
44.80
47.59
31.02
0.00
0.00
0.37
4.0800
411.3900
4
1.44
6.7300
4
4
Tollbooth - Regulated
NO
NO
NO
NO
Canada
1
TSE:QSR
QSR
Restaurant Brands International
Consumer Cyclical
Restaurants
34.40
89.38
27.44
0.00
0.00
4.14
3.2600
69.1000
4
2.16
8.8700
5
4
Consumable - Discretionary
NO
NO
YES
NO
Canada
1
TSE:PPL
PPL
Pembina Pipeline
Energy
Oil & Gas Midstream
54.60
48.39
26.69
10.06
10.06
4.81
5.3900
52.2500
12
2.61
9.4000
5
8
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:TECK.B
TECK.B
Teck Resources
Basic Materials
Other Industrial Metals & Mining
30.75
50.79
26.01
6.11
6.11
10.52
0.9800
10.8900
4
0.50
0.9800
1
3
Intermediate
NO
NO
NO
NO
Canada
1
TSE:FTS
FTS
Fortis
Utilities
Utilities - Regulated Electric
66.65
54.07
25.97
20.03
20.03
2.69
4.1800
80.5900
4
2.26
10.1000
6
7
Tollbooth - Regulated
NO
YES
YES
NO
Canada
1
TSE:WN
WN
George Weston
Consumer Defensive
Grocery Stores
49.49
170.60
24.20
11.83
11.83
9.58
1.5500
15.8400
4
2.64
6.3400
5
4
Consumable - Necessities
NO
YES
YES
NO
Canada
1
TSE:WPM
WPM
Wheaton Precious Metals Corp
Basic Materials
Gold
48.30
53.36
24.12
22.58
22.58
1.53
1.5200
34.0600
4
0.60
13.7300
5
3
Intermediate
NO
NO
YES
NO
Canada
1
TSE:DOL
DOL
Dollarama Inc
Consumer Defensive
Discount Stores
43.97
83.79
24.07
33.51
33.51
2.50
0.2600
8.3700
4
0.22
7.0500
7
2
Consumable - Discretionary
YES
YES
YES
NO
Canada
1
TSE:MG
MG
Magna International
Consumer Cyclical
Auto Parts
41.15
82.55
23.59
19.05
19.05
5.81
2.9400
53.5900
4
1.80
12.1700
3
4
Durable
NO
NO
YES
NO
Canada
1
TSE:FM
FM
First Quantum Minerals
Basic Materials
Copper
40.95
32.62
22.59
14.44
14.44
2.27
0.9800
0.2600
2
0.32
0.9800
2
3
Intermediate
NO
NO
NO
NO
Canada
1
TSE:POW
POW
Power Corporation
Financial Services
Insurance - Life
75.19
34.05
20.86
11.23
11.23
3.26
5.8100
65.4700
4
1.98
10.5200
6
9
Tollbooth - Unregulated
NO
NO
YES
NO
Canada
1
TSE:SJR.B
SJR.B
Shaw Communications
Communication Services
Telecommunication Services
29.15
37.00
18.43
24.26
24.26
1.52
3.2000
83.7700
12
1.19
3.2000
1
5
Tollbooth - Regulated
NO
NO
NO
NO
Canada
1
TSE:MRU
MRU
Metro
Consumer Defensive
Grocery Stores
55.84
77.67
18.30
22.10
22.10
3.80
1.4200
22.7600
4
1.10
12.9900
7
3
Consumable - Necessities
YES
YES
YES
NO
Canada
1
TSE:EMA
EMA
Emera
Utilities
Utilities - Regulated Electric
65.87
52.33
14.04
17.53
17.53
2.91
5.2700
88.4200
4
2.76
9.3800
5
8
Tollbooth - Regulated
NO
YES
YES
NO
Canada
1
TSE:SAP
SAP
Saputo
Consumer Defensive
Packaged Foods
49.38
33.41
14.00
34.25
34.25
1.40
2.1600
73.4600
4
0.72
5.4800
5
3
Consumable - Necessities
NO
YES
YES
NO
Canada
1
TSE:CCO
CCO
Cameco
Energy
Uranium
15.66
32.03
13.85
110.43
110.43
0.31
0.3700
27.4400
1
0.12
0.3700
0
2
Intermediate
NO
NO
NO
NO
Canada
1
TSE:CCL.B
CCL.B
CCL Industries
Consumer Cyclical
Packaging & Containers
64.28
62.38
11.04
17.97
17.97
3.51
1.5400
26.6100
4
0.96
17.5400
8
3
Intermediate
YES
YES
YES
NO
Canada
1
TSE:OTEX
OTEX
Open Text Corporation
Technology
Software - Application
54.54
39.43
10.66
54.01
54.01
4.11
3.3300
163.5600
4
0.97
17.1000
6
5
Subscription
NO
NO
YES
NO
Canada
1
TSE:CTC.A
CTC.A
Canadian Tire Corporation
Consumer Cyclical
Specialty Retail
63.83
155.49
9.59
9.19
9.19
17.93
4.4400
33.7700
4
6.90
13.3300
7
7
Consumable - Discretionary
YES
YES
YES
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:CAR.UN
CAR.UN
Canadian Apartment Properties REIT
Real Estate
REIT - Residential
45.79
43.45
7.40
15.09
15.09
0.00
3.3400
50.3400
12
1.45
5.5700
5
3
Tollbooth - Unregulated
NO
YES
YES
NO
Canada
1
TSE:K
K
Kinross Gold
Basic Materials
Gold
28.43
5.86
7.36
0.00
0.00
0.29
2.7600
114.1900
4
0.12
4.2000
2
4
Intermediate
NO
NO
NO
NO
Canada
1
TSE:GIL
GIL
Gildan Activewear
Consumer Cyclical
Apparel Manufacturing
39.82
39.78
7.14
8.83
8.83
4.20
2.2900
29.4200
4
0.68
3.3200
1
4
Consumable - Discretionary
NO
NO
NO
NO
Canada
1
TSE:AQN
AQN
Algonquin Power & Utilities Corp
Utilities
Utilities - Renewable
47.08
10.17
6.85
153.56
153.56
0.89
9.6000
1638.3500
4
0.72
18.5800
8
0
Tollbooth - Unregulated
NO
YES
YES
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.