BlackRock Asset Management Canada has launched an iShares U.S. high dividend equity index fund (XHD) in the Canadian marketplace.
The fund will provide access to dividend-paying U.S. companies, and begins trading on the TSX today.
“Higher-yield equities are top of mind for many investors,” says Mary Anne Wiley, managing director and head of iShares. “[Recent data suggests] the vast majority considers generating income an important factor when making investment decisions.”
XHD replicates the performance of the Morningstar dividend yield focus index. The U.S. companies included are screened for quality, financial health and liquidity. The fund’s U.S. dollar exposure is hedged back to Canadian dollars.
“XHD tracks the 75 highest dividend-paying stocks in the Morningstar U.S. market index,” says Oliver McMahon, head of iShares product management at BlackRock Canada.