
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) presents a mixed view among experts. The first review points out that while ZUE-T provides exposure to large-cap stocks, especially in the tech sector, it may not offer the diversification needed for investors looking to include US smaller cap equities. On the other hand, the second review emphasizes the long-term value of being invested in the S&P 500, suggesting that this ETF inherits some of the world's best stocks. However, there is a hint of caution regarding potential currency fluctuations, with an inclination towards being hedged against currency risks for the foreseeable future. In essence, while the ETF is recognized for its holding of quality stocks, experts encourage investors to consider diversification strategies and potential currency impacts before making a decision.
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.