Dividend ETFs: A columnist answers readers' questions.

A columnist reports CDZ returned about 18.3% for the year ended Dec. 31, 2025, trailing several other dividend ETFs, and explains tax and listing details for dividend ETFs.

Readers wrote in with questions about dividend exchange-traded funds and specific ETFs. The columnist reviews the iShares S&P/TSX Canadian Dividend Aristocrats ETF (CDZ) and compares its performance and fees with other dividend ETFs. He also addresses tax treatment of ETF distributions, clarifies why some ETF listings are called "units," and discusses U.S. dividend ETFs such as SCHD and S&P 500 ETFs. The responses reference returns through Dec. 31, 2025, fund methodology statements and published distribution classifications. Key points: - CDZ posted about an 18.3% total return for the year ended Dec. 31, 2025, which trailed five other dividend ETFs that returned between roughly 26% and 33.8% that year. - The columnist notes CDZ's three- and five-year returns were at or near the bottom of the group reviewed. - Questions were raised about CDZ's methodology because the ETF includes holdings such as South Bow Corp., spun off Oct. 1, 2024, and Bank of Nova Scotia despite limited recent dividend increases for some periods. - CDZ's management expense ratio is reported at 0.66%, about double the MER cited for other dividend ETFs in the column. - The columnist confirms distributions from Canadian dividend ETFs will very likely include amounts eligible for the dividend tax credit, and that ETF firms publish annual tax-characteristic reports for distributions. - "Unit" is industry jargon for an ETF holding; some ETFs have both Canadian- and U.S.-dollar listings (for example, ZSP and ZSP.U), and U.S. dividend ETFs such as SCHD may omit large technology companies. Summary: The columnist reports CDZ has lagged peers, highlights concerns about its methodology and notes its higher fee relative to other dividend ETFs. He also explains that Canadian dividend ETF distributions typically include eligible dividends for the dividend tax credit, clarifies the term "unit," and contrasts SCHD's low tech exposure with a broad S&P 500 ETF. Undetermined at this time.