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I am quite new to investing and very conservative with the objective of having cash flow in order to make my savings last as long as I live.
One product of Claymore cought my attention because it gives high dividence.

" Canadian Dividend ETF has been designed to replicate the performance of the S&P/TSX Canadian Dividend Aristocrats Index. To qualify for membership in the S&P/TSX Canadian Dividend Aristocrats Index, Standard & Poor’s must first consider the company a “Dividend Aristocrat” by satisfying the following criteria:

1.The company’s security is a common stock or income trust listed on the Toronto Stock Exchange and a constituent of the S&P Canada Broad Market Index (BMI).
2.The security has increased ordinary cash dividends every year for at least five consecutive years.
3.The float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million"

To my naiive mind, the product is attractive? but what doyou think?

Imad
 

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It's fine, but you need to understand that between August of 2008 and March of 2009 it lost about 50% of it's value, so it will fluctuate like any other stock fund or etf.
 

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I have mixed feelings about this fund. The index has a favourable long term record, and the dividends are high.

But a lot of the 'dividend' is from .UN companies and fully taxable. So it would be best to only hold it in a tax protected account. The income trusts will suffer later this year.

I look at the top five holdings and I think I might prefer to have big banks, Telus, TRP et cetera. On the other hand I mistrust cap weighted indices.

I would probably lean toward CRQ or XCV because I like value weighting.
 

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I have mixed feelings about this fund. The index has a favourable long term record, and the dividends are high.

But a lot of the 'dividend' is from .UN companies and fully taxable. So it would be best to only hold it in a tax protected account. The income trusts will suffer later this year.

I look at the top five holdings and I think I might prefer to have big banks, Telus, TRP et cetera. On the other hand I mistrust cap weighted indices.

I would probably lean toward CRQ or XCV because I like value weighting.
Income trusts will not necessarily suffer (in terms of valuations) later this year. That's all been priced in, if not more than priced in. Indeed, holding dividends in a registered account causes one to forgo the dividend tax credit. I would put foreign income, interest income, etc. in a registered account before dividend payers.
 
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