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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 IDX ETF (ZUE-T) has garnered mixed opinions from experts. One reviewer highlights the ETF's significant exposure to large-cap U.S. stocks, suggesting that investors might want to diversify into U.S. smaller caps for better balance. The second review underscores the long-term value of maintaining an investment in the S&P 500, noting its resilience and potential for growth. However, there is a caution regarding the current market conditions, with a suggestion to consider currency hedging for a stronger position against potential fluctuations. Overall, while the ETF has its merits, investors should carefully weigh their options and possibly look into complementary investments.
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.