Vanguard FTSE Canadian High Dividend Yield Index ETF
Price
C$77.98
YTD
+8.50%
Expense
0.22%
Yield
3.80%
🇨🇦 Canada
Best Canadian Dividend ETFs — Monthly Income Funds on TSX
Top Canadian dividend ETFs for monthly income. Compare VDY, XDV, ZDV, XEI — yields, MER, and distributions.
Best Canadian Dividend ETFs — 2026 Guide
Canadian dividend ETFs are a cornerstone of income-focused portfolios. With monthly distributions, tax-efficient Canadian dividends, and yields from 3-5%, these funds provide reliable income.
Canadian Dividend Tax Advantage
Canadian dividends from eligible corporations receive preferential tax treatment through the dividend tax credit (DTC).
VDY vs XDV vs ZDV vs XEI
All four pay monthly. VDY: best yield/fee balance. XEI: broadest. ZDV: highest yield. XDV: most established.
🏆 Winner — #1 pick
iShares Canadian Select Dividend Index ETF
Price
C$47.99
YTD
+7.50%
Expense
0.55%
Yield
3.20%
BMO Canadian Dividend ETF
Price
C$33.63
YTD
+7.00%
Expense
0.39%
Yield
4.50%
iShares Core S&P/TSX Composite High Dividend Index ETF
Price
C$40.30
YTD
+7.80%
Expense
0.22%
Yield
4.20%
Frequently asked questions
What are Canadian dividend ETFs?
Canadian dividend ETFs are exchange-traded funds that invest in Canadian companies with high dividend payouts, providing regular income to investors.
Why are Canadian dividends tax-advantaged?
Eligible Canadian dividends receive preferential tax treatment through the Dividend Tax Credit (DTC), reducing the overall tax burden for investors.
Which Canadian dividend ETF is the #1 pick?
VDY (Vanguard FTSE Canadian High Dividend Yield Index ETF) is the top choice for maximizing dividend yield with monthly distributions.
What is the yield and expense ratio of VDY?
VDY offers a yield of 3.8% and has a low expense ratio of 0.22%.
What is XDV ETF?
XDV is the iShares Canadian Select Dividend Index ETF, tracking 30 high-dividend Canadian stocks for consistent income.
How does XDV compare to VDY?
XDV has a slightly lower yield (3.2%) and higher expense ratio (0.55%) but is one of the most established Canadian dividend ETFs.
What is ZDV ETF?
ZDV is the BMO Canadian Dividend ETF, holding 50+ high-dividend Canadian stocks with a focus on balanced sector exposure.
Which ETF provides the highest yield?
ZDV provides the highest yield at 4.5% among the four major Canadian dividend ETFs.
What is XEI ETF?
XEI is the iShares Core S&P/TSX Composite High Dividend Index ETF, offering broad diversification across 75 high-dividend Canadian stocks.
Which ETF has the broadest diversification?
XEI has the broadest sector and stock diversification among VDY, XDV, ZDV, and XEI.
Do these ETFs pay monthly or quarterly distributions?
All four ETFs—VDY, XDV, ZDV, and XEI—pay monthly distributions.
Which ETF is best for new income-focused investors?
VDY is often recommended for new income-focused investors due to its balance of high yield, low fees, and simplicity.
What sectors are typically included in these dividend ETFs?
Common sectors include financials, energy, utilities, and telecommunications.
Which ETF is considered the most established?
XDV is the most established Canadian dividend ETF, with a long track record and significant assets under management.
What is the YTD return of VDY?
VDY has a year-to-date return of approximately +8.5%.
Which ETF has the lowest expense ratio?
Both VDY and XEI have the lowest expense ratio at 0.22%.
Which ETF is suitable for investors seeking maximum income?
ZDV is suitable for maximum income due to its highest dividend yield of 4.5%.
Can these ETFs be held in a Canadian tax-advantaged account?
Yes, they can be held in accounts like RRSPs and TFSAs, benefiting from tax efficiency and the dividend tax credit.
How does monthly distribution benefit investors?
Monthly distributions provide consistent cash flow, which can be reinvested or used as regular income.
What is the difference between VDY and XEI for diversification?
VDY focuses on the highest-yielding stocks, while XEI offers broader diversification across more Canadian high-dividend stocks.
Which ETF is recommended for balancing yield and fees?
VDY is recommended for balancing high yield and low expense ratio efficiently.
How do these ETFs fit into a Canadian income portfolio?
They serve as core income-generating assets, offering monthly dividends and exposure to stable Canadian dividend-paying companies.