UTIL aims to duplicate, net of costs, the performance of the Solactive Canadian Utility Services High Dividend Index, which is designed to give investors exposure to TSX-listed utility services businesses with strong dividend yields.
A business will be categorized as predominantly operating in one of the index categories “Utilities,” “Pipelines,” or “Telecommunications” to be eligible for inclusion in the index. The index may include small, medium, or large-cap issuers that achieve a minimum yield threshold. The index is also rebalanced to equal weight on a semi-annual basis.
“Historically, the utility services sector has offered a higher level of dividend income than the broader S&P/TSX Composite,” Hawkins said. “Not only do we think this expansion beyond traditional utilities improves diversification for investors, but it might also improve the income generated by the ETF.”
