Investors seeking to reap both capital appreciation and dividends from their investments could consider investing in some of the Exchange-Traded Funds (ETFs). ETFs offer the benefits of enhanced liquidity, diversification, and transparency in investing. Opus Small Cap Value ETF (OSCV) and the RBC Canadian Bank Yield Index ETF (TSE:RBNK) are two funds that provide single-digit returns. Let’s look at the two ETFs in detail.
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Opus Small Cap Value ETF (OSCV)
The Opus Small Cap Value ETF seeks to offer diversification and exposure to small-cap companies that pay regular dividends. These companies are selected on the basis of higher dividend yield and growth, high quality, and lower valuation. Year-to-date, OSCV has returned 22.3% to its investors.
OSCV was founded in July 2018 and carries an expense ratio of 0.79%. As of date, OSCV has an AUM (assets under management) of $499.14 million, with the top ten stocks contributing 23.43% of the total portfolio. OSCV currently pays a regular quarterly dividend of $0.12 per share, reflecting a yield of 1.24%.
Overall, the OSCV ETF has a Moderate Buy consensus rating. Of the 70 stocks held in the portfolio currently, 49 have Buys and 21 stocks have a Hold rating. Also, the average OSCV ETF price target of $42.55 implies 4.6% upside potential from current levels.
RBC Canadian Bank Yield Index ETF (TSE:RBNK)
RBC Canadian Bank Yield Index ETF seeks to replicate the returns of the Solactive Canada Bank Yield Index. RBNK invests in a portfolio of Canadian banks to ensure higher yields and returns potential. Year-to-date, RBNK has returned 24.7% to investors.
RBNK ETF was founded in October 2017 and has an expense ratio of 0.32%. This ETF pays a regular monthly dividend, carrying an average yield of 4.63%. As of date, RBNK has an AUM of C$280.86 million, with only seven holdings in its portfolio.
Overall, the RBNK ETF has a Moderate Buy consensus rating. Of the 7 stocks held in the portfolio currently, five have Buy ratings, while two stocks have a Hold rating. Also, the average RBNK ETF price target of C$30.48 implies 6.7% upside potential from current levels.
Ending Thoughts
The OSCV and RBNK ETFs offer both dividend income and moderate capital appreciation potential. Investors can choose to invest in them after thorough research.
