Table of Contents Show
Dividend stock strategies can be a haven during the kind of market and economic uncertainty that investors are currently facing. Dividend-focused exchange-traded funds make it simpler for investors to access these names.
To screen for the top-performing ETFs in this category, we looked for those with the best returns over the last one-, three-, and five-year periods. Among the ranks of Canadian dividend & income equity funds, offerings from iShares stood out, taking up two of the four funds.
iShares Core MSCI Canadian Quality Dividend Index ETF XDIViShares S&P/TSX Canadian Dividend Aristocrats Index ETF CDZRBC Quant Canadian Dividend Leaders ETF RCDTD Q Canadian Dividend ETF TQCD
Canadian Dividend & Income Equity Funds Performance
Over the last 12 months, Canadian dividend & income equity funds have returned 15.41%. On an annualized rate, Canadian dividend & income equity funds have returned 7.99% over the last three years and gained 13.39% over the last five years. That compares with the Morningstar Canada Index, which has returned 21.47% over the last 12 months, gained 12.65% per year over the last three years, and gained 15.39% per year over the last five years.
Canadian Dividend & Income Equity Funds vs. the Morningstar Canada Index
Source: Morningstar Direct. Data as of May 26, 2025.
What Are Canadian Dividend & Income Equity ETFs?
Funds in the Canadian dividend & income equity category must have a stated mandate to invest primarily in income-generating securities and must invest at least 70% of their equity holdings in securities domiciled in Canada, according to the Canadian Investment Funds Standards Committee. In addition, these funds must invest at least 50% of their noncash assets in income-generating securities such that the three-year weighted average yield on the equity component of the fund’s portfolio is above the three-year weighted average yield of the S&P/TSX Composite Dividend Index. The fund’s average capitalization must exceed the Canadian and Canada-focused small/mid-cap threshold.
Screening for the Top-Performing Canadian Dividend & Income Equity ETFs
To find the best Canadian dividend & income equity funds, we looked at returns data from the past one, three, and five years, using data available in Morningstar Direct. We screened for Canada-domiciled exchange-traded funds in the top 33% of the category using their lowest-cost primary share classes for those periods. We also filtered for funds with a Morningstar Medalist Rating of Bronze, Silver, or Gold. We excluded funds with assets under C$100 million. This left four funds.
iShares Core MSCI Canadian Quality Dividend Index ETF
Over the past 12 months, the C$2.3 billion iShares Core MSCI Canadian Quality Dividend Index ETF rose 20.10%, while the average fund in its category rose 15.41%. The iShares fund, which launched in June 2017, has climbed 12.44% over the past three years and gained 17.43% over the past five years.
iShares S&P/TSX Canadian Dividend Aristocrats Index ETF
Over the past 12 months, the C$942.3 million iShares S&P/TSX Canadian Dividend Aristocrats Index ETF rose 20.07%, while the average fund in its category rose 15.41%. The iShares fund, which launched in September 2006, has climbed 8.87% over the past three years and gained 14.90% over the past five years.
RBC Quant Canadian Dividend Leaders ETF
Over the past 12 months, the C$220.5 million RBC Quant Canadian Dividend Leaders ETF rose 20.71%, while the average fund in its category rose 15.41%. The RBC fund, which launched in January 2014, has climbed 11.51% over the past three years and gained 16.57% over the past five years.
TD Q Canadian Dividend ETF
Over the past 12 months, the C$837.4 million TD Q Canadian Dividend ETF rose 28.08%, while the average fund in its category rose 15.41%. The TD fund, which launched in November 2019, has climbed 14.62% over the past three years and gained 18.40% over the past five years.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
