CDZ:CA: Underperforming Canadian ETF With High Fees

2025-05-28 22:18:46 ET

Summary

• iShares S&P/TSX Canadian Dividend Aristocrats Index ETF is an undifferentiated Canadian dividend ETF with high fees and underperformance compared to similar, lower-cost options like XIU:CA.
• The fund's portfolio closely mirrors the main Canadian index, offering little added value despite its higher expense ratio and limited liquidity.
• While CDZ:CA's corporate class structure offers some tax efficiency, this benefit is outweighed by higher fees and lackluster returns.
• I recommend avoiding CDZ:CA and instead suggest investors stick with broad market ETFs or directly buy top dividend-paying Canadian stocks for better value.

What is CDZ:CA?

The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF ( CDZ:CA ) is a passively managed exchange-traded fund (also known as an ETF) with a NAV of ~$920Mn CAD that invests in stocks designed to provide exposure to a portfolio of Canadian dividend paying stocks. BlackRock, and most of the other big Canadian banks/fund managers, have multiple ETF offerings that end up providing various investment portfolios that track very similar metrics. While CDZ:CA is somewhat liquid, and has an easily verifiable portfolio and mandate, this article seeks to compare this offering with some other passively managed offerings of Canadian equity portfolios because they are often so similar, and not worth the high fees....

Read the full article on Seeking Alpha

For further details see: