BMO Canadian Dividend ETF (ZDV.TO)

The BMO Canadian Dividend ETF (ZDV) is evaluated favorably for its stability during economic downturns, particularly due to its strong exposure to dividend-paying stocks, which tend to perform better in difficult market conditions. With approximately 41% of its investments in financials and 18% in energy, ZDV is positioned to offer consistent cash yields, making it a more reliable choice for investors seeking protection in volatile times. The ETF's significant weighting in utilities further enhances its appeal, as these sectors provide essential services rather than discretionary items. In contrast, the ZCN ETF, which has lower exposure to financials and fewer utilities, is seen as more appropriate for periods of resource booms and growth tied to emerging technologies like AI, but may not offer the same level of defensive characteristics as ZDV.