Unlocking Monthly Income: The Global X Equal Weight Canadian REITs Index ETF as a High-Yield Dividend Play

For income-focused investors seeking predictable monthly payouts in Canada's real estate sector, the Global X Equal Weight Canadian REITs Index ETF (HCRE) has emerged as a compelling option. With a current dividend yield of 4.72% and a recent payout of $0.087 per share on August 8, 2025, this ETF offers a unique blend of structure, performance, and strategic advantages. Let's dissect why HCRE stands out in the crowded REIT ETF landscape.

Structure: Equal-Weighting for Balanced Exposure

HCRE tracks the Solactive Equal Weight Canada REIT Index, which allocates equal weight to each qualifying Canadian REIT, regardless of market capitalization. This approach contrasts with traditional market-cap-weighted indices, where larger REITs dominate. By equalizing exposure, HCRE mitigates the risk of overconcentration in a single property type or company, fostering diversification. For example, if a large REIT underperforms, its impact on the ETF is diluted compared to a cap-weighted fund.

The ETF's expense ratio of 0.33% (as of December 31, 2024) is competitive, especially when compared to peers like the BMO Equal Weight REITs Index ETF (ZRE) at 0.28% and the Vanguard FTSE Canadian Capped REIT Index ETF at 0.28%. While HCRE isn't the cheapest, its equal-weight structure justifies the slight premium for investors prioritizing balanced risk profiles.

Performance: Resilience Amid Volatility

HCRE's performance over the past five years reflects the cyclical nature of real estate. In 2021, it surged by 33.69%, outperforming the S&P/TSX 60 Index Total Return's 34.05%. However, 2022's -17.18% return mirrored broader REIT sector struggles, though it outperformed the Mackenzie Developed Markets Real Estate Index ETF (-17.74%).

As of Q2 2025, HCRE has delivered a 12.62% total return year-to-date (YTD), trailing the S&P/TSX 60's 15.43% but outpacing the iShares Global Real Estate Index ETF (4.87%). This resilience underscores its ability to weather market fluctuations while maintaining a steady dividend cadence.

Dividend Consistency: A Double-Edged Sword

HCRE's monthly dividend structure is its crown jewel. Since inception in 2019, it has never missed a payout, even during the 2020 pandemic and 2022's interest rate hikes. While the cash amount per share fluctuates—such as a 34.76% surge in October 2022 or a 13.59% drop in September 2022—the frequency remains unbroken.

The recent $0.087 per share payout on August 8, 2025, aligns with a 4.72% yield, which, while lower than some high-yield alternatives, offers predictability. For instance, the iShares Global Real Estate Index ETF has a higher yield but lacks HCRE's equal-weight discipline and monthly consistency.

Strategic Advantages for Income Investors

1. Diversification via Equal Weighting: By avoiding overexposure to any single REIT, HCRE reduces the risk of sector-specific downturns.
2. Low-Cost Access to REITs: At 0.33%, it's among the cheapest Canadian REIT ETFs with a diversified mandate.
3. Monthly Liquidity: The ETF's average daily trading volume of 5,339 shares ensures sufficient liquidity for investors seeking regular income.

However, HCRE isn't without drawbacks. Its dividend yield isn't the highest in the sector—peer ETFs like the Vanguard FTSE Canadian Capped REIT Index ETF occasionally offer higher yields. Yet, for investors prioritizing consistency over maximum yield, HCRE's track record is hard to ignore.

Investment Thesis: A Balanced Income Play

HCRE is ideal for investors who:
- Value Predictability: The ETF's unbroken monthly dividend streak since 2019 provides reliable income.
- Seek Diversification: Equal weighting ensures no single REIT can derail performance.
- Accept Moderate Yield: A 4.72% yield is solid but not exceptional, requiring patience for long-term compounding.

Conclusion: A Steady Hand in a Volatile Sector

While high-yield REITs often promise eye-catching returns, they come with elevated risk. HCRE, by contrast, offers a balanced approach: a low-cost, diversified portfolio with a proven ability to deliver monthly income. For investors who prioritize consistency and risk management, HCRE is a standout choice in Canada's REIT landscape.

As always, due diligence is key. Investors should assess their risk tolerance and consult a financial advisor to determine if HCRE aligns with their broader portfolio goals. But for those seeking a reliable monthly income stream, HCRE's equal-weight structure and dividend discipline make it a compelling candidate.