Opinions
Stan Wong
Horizons NASDAQ-100 Index ETF
HXQ-T
SELL
Nov 16, 2023
$61.980
Stock price when the opinion was issued
E.T.F.'s
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WEAK BUY
HXQ vs. ZQQ, if tech continues to do well. Tech touches us in every sense and every part of what we do. Interest rates are on the rise, and growth stocks like tech tend to underperform in that environment. Stick with tried and true, like FB, GOOG, and MSFT. The BMO strategy is hedged. He prefers the unhedged version, HXQ, especially as the CAD is at the higher end of a 6-7 year range. Also, the HXQ is cheaper at 28 bps; whereas ZQQ is 39 bps. Greater tax efficiency with HXQ when you look at non-registered accounts. US dividends from these tech stocks are characterized as deferred capital gains, so for non-registered investors, that may be a compelling reason to go with HXQ.
E.T.F.'s
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
We do like HXQ and it is our top pick for a CAD ETF that tracks the NASDAQ-100. We also think XQQ is another good option although it is hedged. XQQU is the unhedged version but it is very new, small and charges a higher fee so we like HXQ better. HXQ is also a 'total return' fund that pays no distributions, and this can be efficient for taxes.
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E.T.F.'s
Investors have been rewarded, but valuations are stretched for the NASDAQ, so be careful. Higher expense ratio of 28 bps, there are strategies out there with lower expense.