For investors that are looking for a good mix of dividend income and capital appreciation, the Horizons Active Cdn Dividend ETF Common (TSX:HAL) could be an ideal investment.
Since the start of the year, the ETF has risen by 17%. And over the past 12 months, it has produced a dividend yield of more than 3%. The goals of the fund, however, are to not only generate recurring dividend income for investors, but also to seek “modest long-term capital growth” as well.
The fund also looks to hedge its exposure to the U.S. dollar to help minimize the risk for Canadian investors.
With a management fee of 0.55%, it’s right in line with many other funds as it is competitively priced. As to what’s actually in the fund’s holdings, it’s a very balanced mix of various different sectors.
Energy (21.34%) and financial services (17.82%) were the largest sectors of the fund, accounting for more than 39% of its total holdings. However, there are many other industries the fund invests in, giving investors a lot of diversification.
The biggest holdings of the stock are in Royal Bank of Canada (TSX:RY)(NYSE:RY) at 4.29%, Pembina Pipeline Corp (TSX:PPL)(NYSE:PBA) at 3.52% and Toronto-Dominion Bank (TSX:TD)(NYSE:TD) accounting for 3.34%.
The fund isn’t heavily exposed to any one stock but the only downside is that because of its exposure to the energy sector, that’s likely dragged down the fund’s performance given the struggles that oil and gas stocks have had over the years.
However, if conditions improve in the industry, their values could also see a lot of upside.
Overall, the fund does a good job of balancing growth, dividends and diversification, making it a formidable investment option for investors looking for a quality ETF.
