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TSE:ZLU

BMO Low Volatility US Equity ETF (ZLU.TO)

62.66
-0.30 (0.48%)
as of Jun 18, 2026, 7:59:15 pm Market Open.
71 watching
0
BUY
He likes this ETF. Is very diversified with over 100 names. This is a good defensive strategy.
BUY
This has done extremely well, outperforming America in 2018. The yield is okay, but it has good diversification and it will let you sleep at night. It holds Mattel, McDonald's and others.
BUY
A great performer for him. Solid companies in this American ETF. This is a safe way to play the U.S. BMO may have a hedged version of this. He thinks the Canadian market will outperforming American this year, so look at ZLB (the Canadian version of this). (XIC is more volatile and riskier.)
DON'T BUY
Low-vol actually gives you better returns than higher-volatility stocks. That counters popular opinion. But this is US, which he feels will underperform globally. He likes ZLU that it's in USD. However, he prefers buying a gloval low-vol ETF.
TOP PICK
You play the U.S. markets with little risk, since this covers big-cap, stable stocks with low-volatility. It won't take off like a rocket, but at least you're participating in the market. 0.33% MER
BUY
As the name says, it's low-vol. True, it underperforms in a strong bull market, but it's stable and overall does very well. ZLU is up 9% this year. You can sleep at night owning this. He's long owned this.
BUY
ZPW-T vs. ZWH-T. If you can afford to stay in cash and wait for markets to correct, it is preferable. He uses ZPW-T and ZWH-T as well as ZLU-T to hold his exposure to the equity market. They will fall much less than the S&P. They are not risk free.
PAST TOP PICK

(A Top Pick July 26/17, Up 16%) Still likes it. Not that exciting, but good way to get diversified US exposure. Yield around 1.7%.

PAST TOP PICK

(A Top Pick October 7/16. Down 1%.) Not Cdn$ hedged which he regrets. If you are reasonably positive on US currency in the next 12 months, it should recover quite nicely. Has a good spread of very solid individual stocks. An easy way to get into part of the US market that is basically conservative, low volatility, but you are also exposed to the currency.

TOP PICK

If you want to invest in the US, this would be his favourite vehicle. It has done quite well for him. It took quite a hit recently because of the stronger Cdn$, so the timing is pretty good. You are getting a participation in the market, but a part of the market that is not bouncing up and down. A good way to participate in the US market.

COMMENT

There has been a lot of talk about low volatility strategies over the past couple of years. That is great to have until it is not great to have. When you look at a lot of low volatility ETF’s, they are a bit expensive when looking at the names that are in them. He would rather go to something closer to the S&P 500, which has a little more growth involved, or looking at some of the International ETF’s.

PAST TOP PICK

(A Top Pick May 27/16. Up 10%.) He still likes this. It is a good safe way to tap into the US market, particularly if you are concerned about the Canadian situation.

PAST TOP PICK

(A Top Pick Dec 4/15. Up 7.70%.) He likes low volatility things. As the markets started to pick up, this tended to be a bit laggy. A nice core holding to have in your portfolio as he believes equity markets are going to be rising.

TOP PICK

For investors who want a broad spectrum of the US markets. They are in the areas that are quite good, consumer staples, utilities, healthcare and consumer discretionary. A very safe kind of thing.

COMMENT

The low volatility holdings tend to be utilities, healthcare, tech, telecom, consumer staples and can also be mining stocks. Three of these sectors are underperforming the markets.

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