iShares expands its repertoire of dividend strategies

Low fees could help improve on weak performance of existing ETFs.

Rudy Luukko 13 June, 2017 | 5:00PM

With today's launch of the iShares "quality-dividend" suite, the Canadian market leader in exchange-traded funds has expanded its already extensive repertoire of ETFs with dividend-driven strategies.

Of necessity, to avoid the "yield trap" of companies whose dividend yields reach lofty heights because the stock price has plunged, all dividend strategies require screening for quality. So it is for the five newest ETFs sponsored by BlackRock Asset Management Canada Ltd.

Branded as the iShares Core MSCI quality-dividend ETFs, they fall into the strategic-beta camp, in that they track rules-based indexes. The Canadian, U.S. and Global ETFs opened for trading today on the Toronto Stock Exchange, and currency-hedged versions of the latter two are scheduled to make their trading debut on June 16. (See table.)

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About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.