XACT Nordic High Dividend

Since the end of 2024, I have been saving regularly in XACT Norden High Dividend , which is an exchange-traded fund with quarterly dividends. I have little regret that I did not join the bandwagon earlier.

Most important to understand with XACT Nordic High Dividend is:

Sweden’s most owned ETF, based on Avanza’s customer database. By a good margin, too.
You get 45 underlying companies by buying this, spread across our Nordic countries.
The banking sector is the most important. It is worth considering when you then buy individual shares.
The goal is for you as an investor to receive 4.5% in annual direct return. The dividend is paid quarterly. March, May, September and November
As this is an exchange-traded fund, trading takes place immediately when you buy/sell (i.e. not once a day at the cut-off time, like in a regular fund). You pay a sales commission for buying/selling but also an annual fee of 0.3%.
No withholding tax on your dividends.
Since its inception in April 2017, the fund has delivered a total return of 121%, representing an average annual growth rate of 10.4%.

A good quarterly dividend ETF

The fund has performed better in 5 out of 9 years but has fallen behind when the Stockholm Stock Exchange has risen significantly. On the other hand, when the stock market has performed poorly, this has worked as a really good airbag.

The goal is to distribute 4.5% of the unit value annually. Today, the dividend yield is 4.72% based on the dividend paid this year. We usually find out what the dividend will be next year at the end of January of the same year. We can therefore expect the next dividend announcement in January 2026.

Given the fund’s holdings (the majority are high-dividend Nordic stocks), you cannot expect high dividend growth. On the contrary, the dividend may decrease in some years. This should not be normal as the holdings are of a very stable nature, which usually increases the dividend.

Besides, we’re talking about 45 high-stakes players. Lowering a few won’t make too much of a difference.

So why is it really worth owning XACT High Dividend?

First and foremost, I believe in the concept of owning high-yielding stocks that have proven to be stable. The sector spread is also very attractive.

Bank 16.2%
Insurance 12.5%
Industry 12.1%
Telecom 9.9%
Forest 8.2%
Food 6.2%
Investment companies 6.0%
Food distribution 4.4%
Real estate 3.4%
Other 20%
Cash 1.1%

I mainly like that you get a lot of insurance when you invest. It is otherwise a sector we tend to forget about as we in Sweden hardly have anything listed in the sector.

The fee of 0.3% is also quite a bit lower than the other more popular ETFs in Sweden.

The fact that you also receive a continuous cash flow (dividends) that you can use to reinvest where there is an opportunity.