Larry Berman CFA, CMT, CTABMO US Dividend Hedged to CADZUD.TOBUYJun 20, 2016

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$.

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.

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.

This dividend ETF looks interesting in terms of its components. Has been attracting a lot of fund flows.