Prakash Hariharan BMO US Dividend Hedged to CAD ZUD-T BUY Feb 24, 2015

US dividend stocks? There are a couple of different ways to play this. You could do this through and equally weighted diversified basket of ETF dividend payers like this one. He would go with a hedged version. If things are going to recover, the Cdn$ is going to get a bit stronger, and you want to make sure you are hedged.

Hold off until after the election? We have bigger concerns over the next year than the US election. Europe fracturing next year is a bigger risk for global markets. ZWH-T gives you higher dividend payers, but is not currency hedged. He sees a 10% correction minimum in the next 6 months.

US Dividend Hedged to Canadian dollars. When you buy a hedged product, you are making a call on the currency. You should hedge unless you feel strongly the US dollar will go up or you are trying to create a diverse basket of foreign currencies. Right now he would buy this hedged version.

ZDY-T vs. ZUD-T. They are identical holdings. ZUD-T has a currency hedge. He buys ZDY-T to get exposure to the US dollar as well as US dividends. If he thinks the CAD$ will get stronger, he trades to ZUD-T. You can also get ZDY.U-T to buy it in US$.