Tuesday, October 27, 2015

Recent Trade - Entry Point

    On Monday, I purchased 200 units of XDV on the Toronto Stock Exchange.  This is an exchange traded fund, or ETF.  ETFs is like a fund but trades as a stock.
     XDV is known as the iShares Dow Jones Canadian Select Dividend Fund.  The current yield of the ETF is approximately 4.78%.  The fund has a lot of financials in the top 10 of their fund. Canada is known for its financial sector,  and in particular, the big 5 banks.  Below is a  table, as of October 26,  showing the top 10 stocks of the fund by weight.

Canadian Imperial Bank of CommerceCM9.75%
Bank of MontrealBMO6.92%
Royal Bank of CanadaRY6.40%
Bell Canada EnterprisesBCE5.98%
Bank of Nova ScotiaBNS5.50%
Rogers Communications Class BRCI.B5.08%
Laurentian Bank of CanadaLB4.97%
Toronto Dominion BankTD4.34%
Manitoba Telecom ServicesMBT4.29%
IGM Financial Inc.IGM4.19%

    I own shares in 6 out of these top 10 holdings.  My brokerage has zero commission ETFs which I took advantage of here.  I purchased 200 units at $22.49 on October 26.   I put in a good to cancel order to sell these units.  I will hold this ETF until my order gets filled. In the mean time, I will collect any dividends that this ETF will pay me.  There will be a commission on the sale.

Click to Enlarge
    An individual could use commission free ETFs, such as this, to get a higher yield than a savings account.  The yield on savings accounts today is so small these days and non-existent for regular day to day savings accounts.  Of course, the higher yield brings more risk such as the price of the ETF could go down below your cost basis.


I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.


  1. Nice buy. I usually only by stocks directly. What I like about this one is it captures all of the Canadian major banks in on fund. Nice work and thanks for sharing.

    1. Investment Hunting,

      Thanks for dropping by. I also prefer to buy individual stocks. This position is actually a trade, so I sent have a GTC order to sell it. An ETF such as this one call allow someone to invest in the markets with very little cash as it is commission free, which is offered by some brokerages.