Search
Search for an ETF or holding
Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
A blue chip is a stock of a large, well-established, financially sound company known for its stability. These companies typically pay regular dividends and have a long track record of performance.
In Canada, blue chips include the big banks (RY.TO, TD.TO, BNS.TO), insurance companies (MFC.TO, SLF.TO), and telecoms (BCE.TO, T.TO). In the US, think Apple, Microsoft, or Johnson & Johnson.
The ETF XDV.TO (iShares Select Dividend) focuses on high-dividend Canadian blue chips. XIU.TO (iShares S&P/TSX 60) holds the 60 largest Canadian companies, mostly blue chips.
Blue chips are often the core of a conservative portfolio. Their stability and regular dividends make them popular for investors seeking predictable income, especially in retirement. However, a portfolio made up solely of Canadian blue chips lacks geographic diversification.