Opinions John DeGoey
BMO S&P/TSX Capped Composite Index ETF.ZCN.TOCOMMENTJan 06, 2020
John DeGoeyStock price when the opinion was issued
As of Sep 29, 2026. Market Open.
You might be interested:
XDIV holds high-quality dividends, FXM is a value tilt, while ZCN is the broad TSX. In terms of rising rates, XDIV holds a lot of energy, but is effected by what's happening in the Middle East, not rates. ZCN holds energy, but less than XDIV, though many more banks and financials, which are sensitive to interest rates. When rates rise, seek value stocks, and those tend to be gold stocks. It's a complex question. Seek value stocks.
XDIV holds high-quality dividends, FXM is a value tilt, while ZCN is the broad TSX. In terms of rising rates, XDIV holds a lot of energy, but is effected by what's happening in the Middle East, not rates. ZCN holds energy, but less than XDIV, though many more banks and financials, which are sensitive to interest rates. When rates rise, seek value stocks, and those tend to be gold stocks. It's a complex question. Seek value stocks.
ZDV has no covered writing, nothing fancy. Financials are ~41%, energy ~18%. In a correction, generally the dividend stocks do better because they have the cash yields attached to them. Also because it usually has a greater weighting in utilities (these still provide needs, not wants, in a downturn).
ZCN has less exposure to financials or to the dividend side of the equation. Has fewer utilities. More oil & gas, gold, metals, materials. In a resource boom, and with all the things tied to AI, this one will do better.
(A Top Pick, Jun 29/17, Up 7%) It is a core allocation for him in the Canadian potion of a portfolio. Have more than 5-20% Canadian exposure.
Daniel Straus
When you buy an ETF from a BMO or Blackrock, it will be well-capitalized. Don't worry about bid/ask spreads or liquidity. ZCN is the Canadian benchmark. Don't worry about capitalization. ZCN is a plain vanilla product. He prefers an inverse ETF (see top picks).