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TSE:ZUE
This summary was created by AI, based on 2 opinions in the last 12 months.
The BMO SP 500 Hedged CAD Index ETF (ZUE-T) is experiencing a mixed reception among experts. One review suggests that while it provides exposure to large-cap stocks, it might be prudent for investors to consider diversifying into U.S. smaller caps to achieve a better balance in their portfolios. Another perspective emphasizes the enduring value of the S&P 500, indicating that it contains some of the best stocks globally. However, the reviewer also mentions a concern regarding U.S. markets and suggests that investors may want to be currency-hedged as they look ahead five years or more. Overall, while ZUE-T is generally seen as a solid investment, caution is advised based on market conditions and the desire for diversification.
Hedging is the thing that protects you in terms of currency fluctuation. If the Cdn$ is strong, you lose money when you convert from US$’s to Cdn. However, if it is relatively weaker, you are making money. As it is right now, if you have things invested in the US, most people think that an $.88 dollar might be a bit of a stretch, but a $.90-$.91 dollar a year from now, might be quite realistic so a hedge is rather unnecessary.