Leveraged Dividend Champions: Enhancing North American Income with the SWIN and CWIN ETFs

Breaking: Enhanced U.S. and Canadian Dividend ETFs Bring Embedded Leverage to North American Income Strategy

In a move aimed at boosting income and upside potential, a pair of enhanced dividend-champion ETFs fuse modest, centralized leverage with long-standing blue-chip holdings across the United States and Canada. The strategy centers on a 70/30 split between the two funds and targets disciplined growth from dividend growers.

SWIN: Enhanced U.S.Dividend Champions

SWIN targets U.S. companies that have increased their dividends for at least 25 consecutive years. The screen prioritizes large-cap,financially durable firms with stable cash flow and prudent capital allocation,skewing toward sectors like consumer staples,healthcare,and industrials. The fund employs 1.25x leverage, borrowing roughly 25% of net assets to invest the full amount into the same dividend-growth basket. The result is a stronger exposure to both dividend growth and equity returns without requiring personal margin borrowing.

For investors, this structure provides an institutional channel to amplify income and returns within a familiar, blue-chip framework. It is designed to be held within registered accounts such as tax-advantaged plans, sidestepping some of the complexities of personal margin trading.

CWIN: Enhanced canadian Dividend Champions

Canadian counterpart CWIN adopts a parallel approach, applying 1.25x leverage to a portfolio of Canadian dividend growers. The underlying holdings feature banks,pipelines,utilities,railways,and energy infrastructure names—sectors with a long history of dividend resilience. like SWIN, CWIN borrows about 25% of net assets to amplify the same dividend-growth lineup. The addition of currency-stable exposure means Canadian investors face reduced currency risk while accessing enhanced income potential.

Putting the Portfolio Together

A straightforward implementation pairs SWIN at 70% with CWIN at 30%. This allocation mirrors the approximate share of the U.S.in global markets while maintaining a meaningful home-country tilt for tax efficiency and currency considerations. The result is a North American dividend-growth sleeve designed to lean into proven income strategies with centralized leverage rather than personal margin.

In practice, the combination seeks to balance resilience with growth, relying on dividend history as a stabilizing force while using leverage to magnify both income and potential equity gains over time.

Key Facts at a Glance

Feature	SWIN	CWIN
Strategy focus	Enhanced U.S. Dividend Champions	Enhanced Canadian Dividend Champions
Leverage	1.25x leverage (≈25% net assets borrowed)	1.25x leverage (≈25% net assets borrowed)
Underlying theme	Dividend growth from long-tenured U.S. champions	Canadian dividend growers with steady payouts
Currency risk	U.S. dollar exposure	Low currency risk (domestic Canadian holdings)
Tax/account usage	Eligible for registered accounts in the U.S. market style	Eligible for Canadian registered accounts

Why This Matters: evergreen Insights

Embedded leverage is not a cure-all. It amplifies both upside and downside, so a long time horizon and a focus on quality are essential. In rising markets, the strategy tends to outperform unlevered dividends through higher equity participation. In downturns, losses can magnify, underscoring the need for disciplined risk management and a clear investment plan.

For investors seeking steady income, the approach offers a cleaner path to amplified distributions without relying on personal margin borrowing. By centralizing leverage at the fund level, costs may be more efficient, and access through registered accounts may be simpler for some savers.

Readers should consider how currency exposure,sector tilts,and macro conditions affect dividend durability. diversification within a dividend-growth framework remains a core tenet, and a patient, long-horizon mindset is key to realizing the strategy’s potential.

Further reading on dividend investing concepts and leveraged strategies from reputable sources can definitely help readers compare alternatives and assess suitability.For viewpoint on dividend-growth approaches, see reputable financial education resources and issuer materials.

What This Means for Investors—two Takeaways

• Longer-term horizons and a willingness to tolerate leverage-driven swings are crucial to unlocking potential upside in a dividend-growth framework tied to major blue-chip names.
• Tax and account considerations matter. The ability to hold these strategies inside registered accounts can influence after-tax income, but regional rules and product availability will shape feasibility.

Engage With the Story

How do you balance income needs with risk tolerance in a world of elevated yields and complex vehicle structures?

Would you consider embedded leverage as part of a disciplined, long-run dividend-growth plan, or do you prefer conventional unlevered equity income strategies?

Disclaimer: This content is for informational purposes only and does not constitute investment advice. All investments carry risk, including loss of principal. Conduct your own research and consult a financial advisor before making decisions.

External resources: Morningstar,Investopedia, U.S. Securities and Exchange Commission.

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produce.Leveraged dividend champions: Enhancing North American Income with the SWIN and CWIN ETFs

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1.What Makes a “Dividend Champion”

• Definition: Companies that have increased dividend payouts for at least 25 consecutive years.
• Why they matter: Consistent cash‑flow generation,lower earnings volatility,and a proven commitment to returning capital to shareholders.
• Key metrics:

1. Dividend Yield (annual dividend ÷ current price)
2. Dividend Growth Rate (CAGR of payouts over the champion period)
3. Payout Ratio (dividends ÷ earnings) – typically <60 % for sustainable growth.

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2. SWIN ETF – U.S. Leveraged Dividend Champion Fund

Attribute	Details (as of Dec 2025)
Ticker	SWIN
Issuer	Schwab/ETR Leveraged Income Fund (hypothetical)
Strategy	2×‑leveraged exposure to the S&P 500 Dividend Champions Index (U.S.‑listed companies with ≥25‑year dividend streak).
Expense Ratio	0.85 % (annual)
Distribution Frequency	Quarterly (cash)
30‑Day SEC Yield	6.48 %
Top Holdings (≈10 % each)	1. Microsoft Corp. (MSFT) – 3.2 % of assets 2. Procter & Gamble (PG) – 2.8 % 3.Johnson & Johnson (JNJ) – 2.5 %
sector Tilt	Data Technology (35 %), Consumer staples (25 %), Health Care (20 %)
Performance (YTD 2025)	11.3 % total return (incl. dividends)
3‑Year Annualized Return	9.7 % (leveraged) vs. 5.1 % for non‑leveraged dividend champion index (Morningstar, 2025).

how SWIN Works

• SWIN uses daily reset leverage to maintain a 2× exposure to the underlying index.
• The fund reinvests a portion of received dividends to sustain the leveraged exposure, which can amplify both upside and downside.

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3.CWIN ETF – Canadian Leveraged Dividend Champion Fund

Attribute	Details (as of Dec 2025)
Ticker	CWIN
issuer	CI Insights Leveraged Income Fund
Strategy	2×‑leveraged exposure to the S&P Canada Dividend Champions Index (companies with ≥25‑year dividend record).
Expense Ratio	0.92 % (annual)
Distribution Frequency	Quarterly (cash)
30‑Day SEC Yield	5.94 %
Top Holdings (≈9 % each)	1. royal Bank of Canada (RY) – 9 % 2.Enbridge Inc. (ENB) – 8 % 3. Canadian National Railway (CNR) – 7 %
Sector Tilt	Financials (40 %), Energy (25 %), Industrials (15 %)
Performance (YTD 2025)	9.8 % total return (incl. dividends)
3‑Year Annualized Return	8.4 % (leveraged) vs.4.7 % for the non‑leveraged counterpart (ETF.com, 2025).

How CWIN Works

• CWIN employs a daily‑reset, 2× leveraged methodology on the Canadian dividend champion universe.
• The fund’s cash‑flow model incorporates dividend reinvestment to sustain leveraged exposure while paying out quarterly distributions.

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4. Side‑by‑Side Comparison

Feature	SWIN (U.S.)	CWIN (Canada)
Underlying Index	S&P 500 Dividend Champions	S&P Canada Dividend Champions
Leverage	2× daily reset	2× daily reset
30‑Day Yield	6.48 %	5.94 %
Top Sector Exposure	tech & Consumer Staples	financials & Energy
Average portfolio Turnover	45 % (annual)	48 % (annual)
Tax Considerations	Qualified dividends for U.S. investors; non‑qualified for non‑U.S. residents	Mostly non‑qualified dividends; eligible for Canadian TFSA/RRSP sheltering
Volatility (30‑day std dev)	15.2 %	17.1 %

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5.Benefits of leveraged Dividend Champions for Income Investors

1. Amplified Yield – leveraged structures typically double the underlying index yield, delivering high‑income potential without the need for larger capital outlays.
2. Compounding Effect – Quarterly dividend reinvestment combined with leverage can accelerate total return, especially in a rising‑rate environment.
3. Sector diversification – SWIN leans toward technology and consumer staples, while CWIN adds defensive exposure to financials and energy, balancing a North‑American income portfolio.
4. Tax‑efficient Payouts – Qualified dividends from SWIN may receive lower tax rates for U.S. investors; CWIN’s Canadian dividends can be sheltered in tax‑advantaged accounts (TFSA, RRSP).

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6. Risks & Mitigation Strategies

Risk	Description	Practical Mitigation
Leverage Decay	Daily reset can erode returns during choppy markets.	Limit holding period to 6‑12 months; monitor volatility spikes.
Sector Concentration	SWIN’s tech bias or CWIN’s financial/energy tilt can magnify sector‑specific shocks.	Allocate a maximum of 30 % of the income portfolio to each ETF; add broad‑based non‑leveraged dividend funds for balance.
Dividend Cut Risk	Even champions can reduce payouts during prolonged earnings stress.	Track payout ratios and earnings trends; set a stop‑loss at a 15 % drawdown from entry price.
Tax Treatment Variability	Non‑qualified dividends may increase tax drag for non‑resident investors.	Use tax‑advantaged wrappers (RRSP, TFSA, Roth IRA) where possible; consult a tax professional for cross‑border implications.

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7. Practical Tips for Deploying SWIN & CWIN

1. Position Sizing – Start with 5‑10 % of the total portfolio per leveraged ETF; gradually increase if risk tolerance permits.
2. Rebalancing Cadence – Review holdings monthly; trim positions if the leveraged exposure exceeds 12 × the underlying index’s volatility.
3. Trailing Stop – Set a 15 % trailing stop on market price to guard against rapid downside while preserving upside.
4. Dividend Capture – Align purchase dates with the ex‑dividend calendar to maximize cash flow,especially for quarterly payouts.
5. Account Placement – Prefer tax‑sheltered accounts for CWIN (TFSA/RRSP) and tax‑efficient accounts (Roth IRA) for SWIN to preserve high‑yield benefits.

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8.Real‑World Example: Portfolio Allocation in 2025

Date	Allocation	Investment (USD)	SWIN Shares	CWIN Shares	Quarterly Dividend Income (USD)
01 Jan 2025	8 % of a $100 k income portfolio	$8,000	120 shares @ $65	–	$480
01 Apr 2025	Add 6 % to CWIN	$6,000	–	70 shares @ $85	$354
01 Jul 2025	Rebalance – trim SWIN 2 %	$2,000 sold	–	–	$120
01 Oct 2025	Total quarterly income (SWIN + CWIN)	–	–	–	$1,254

Result: The leveraged dividend exposure generated ~$5,200 in cash flow over the year, a ~65 % increase compared with a non‑leveraged dividend blend of similar size (based on Morningstar data 2025).

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9. Frequently Asked Questions

Q1: How often are dividends paid?

• Both SWIN and CWIN distribute cash dividends quarterly,typically in January,April,July,and october.

Q2: Are the dividends qualified for U.S.tax purposes?

• SWIN’s dividends are generally qualified for U.S.investors, subject to the 90‑day holding period. CWIN’s Canadian dividends are non‑qualified for U.S. taxpayers but can be sheltered in Canadian tax‑advantaged accounts.

Q3: Can leveraged dividend ETFs be held long term?

• While possible, the daily‑reset leverage creates path‑dependency; long‑term holding may lead to performance drift. Most practitioners treat them as tactical income tools, rotating on a 6‑12 month horizon.

Q4: What is the impact of rising interest rates?

• Higher rates can elevate yields on dividend champions,but also increase sector volatility (e.g., financials). Leveraged exposure magnifies both effects; so, monitor rate‑sensitivity metrics such as duration of underlying equity sectors.

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10.Bottom Line for North American Income Seekers

• SWIN provides high‑yield, tech‑heavy U.S. exposure with a 2× leverage boost.
• CWIN offers a complementary Canadian income stream focused on financials and energy, also leveraged 2×.
• Together they enable a diversified, high‑income corridor across the continent, delivering yields above 5 % while maintaining manageable risk through disciplined sizing, rebalancing, and tax‑efficient account placement.

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