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BMO EQUAL WEIGHT BANKS INDEX ETF
BMO NASDAQ 100 HEDGED TO CAD INDEX ETF (ZQQ-T)
138 watching
TSE:ZQQ
103.47
0.03
(0.03%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Jun 5, 2023, 7:59 pm
0
DON'T BUY
E.T.F.'s
$90.950
Unknown
COMMENT
It is down about 30% and market cap weighted so a few stocks can prevail over the rest the holdings. An alternative is QQEQ.F which equal weights the 100 stocks in the NASDAQ and therefore gives broader exposure. It is down 20%.
E.T.F.'s
DON'T BUY
ZQQ vs. XSP He's underweight tech and communications and high-growth stocks. If you look at the NASDAQ 100, it's down 31% from last November highs. Still kind of expensive at 3.7x price to sales, a bit of a premium to 10-year average of 3.5x. Just because it's come down in price, doesn't necessarily make it cheap. He'd prefer the XSP, as it's more diversified, though it still has 34-35% in tech and communications. He's been noticing the equal weight index outperforming, but tech and communications are still not improving.
E.T.F.'s
DON'T BUY
Highly into the tech side. Hedging means it didn't benefit you as the USD went up, but may benefit you if the CAD starts to rise, but he's not certain. NASDAQ down about 31%. He prefers to stay with the big tech names. Trading at 3.7x price to sales, still a slight premium to 10-year average.
E.T.F.'s
TRADE
Sell ARKK and add to ZQQ? Good idea. ZQQ is a broader universe. ARKK is more of an innovator-type fund, lots more risk. Whole semi side is very difficult. Oversupply and under-demand, and so the price of memory chips is coming down. He'd recommend trading the ZQQ. He definitely wouldn't go into the ZQQ as an investment.
E.T.F.'s
WAIT
ZQQ vs. SOXX He doesn't pick ETFs. Mixed messages out of semiconductor industry. Demand issues. Cyclical industry. Trend for semis is degrading, not accelerating. Buying now is a risk. Wait for the semi market to bottom, perhaps in Q4.
E.T.F.'s
DON'T BUY
It holds tech and biotech names, a space he doesn't want to be in now.
E.T.F.'s
TOP PICK
Down 25%, so it's on sale. Warren Buffett says this is the only business where you put up a sign that says "On Sale", and all the customers run for the exits. Can it go down from here? Of course it can. But he buys with only a small proportion of a client's available cash.
E.T.F.'s
SELL
Cautious on tech, reducing some of his names and putting the rest on probation. Price to sales ratio is 4.25x, not cheap, overvalued. Rising rates won't do it any favours. He'd be pretty fearful, wouldn't be adding. You'll see fantastic bounces when the market turns, but if you're not trading it and holding instead, he'd be careful.
E.T.F.'s
SELL ON STRENGTH
Good for large cap tech. Probably want to wait to play large cap tech until the late half of the year. Looking at the QQQ, we will see it at $300 before seeing it at $400 again. Sell on strength until it gets on better valuations.
E.T.F.'s
DON'T BUY
Thinks from a short term perspective it will bounce this week, but isn't going to make new highs. Not a good time to put new money, need to see much deeper correction in large tech sector. Will likely underperform until the fed gives a signal that they are done with their tightening exercise. Maybe in 2023.
E.T.F.'s
BUY
If you believe tech stocks will continue to do well, then add. These are some of the best companies in the world, though some just reported tough earnings facing issues like Apple (supply chain). ZQQ will offer diversity. It's a great way to play tech and will do well over the long term. He doesn't see a world less digitized and using the cloud less post-Covid. These companies have great balance sheets.
E.T.F.'s
DON'T BUY
ZQQ vs. HXQ, if tech continues to do well. Tech touches us in every sense and every part of what we do. Interest rates are on the rise, and growth stocks like tech tend to underperform in that environment. Stick with tried and true, like FB, GOOG, and MSFT. The BMO strategy is hedged. He prefers the unhedged version, HXQ, especially as the CAD is at the higher end of a 6-7 year range. Also, the HXQ is cheaper at 28 bps; whereas ZQQ is 39 bps. Greater tax efficiency with HXQ when you look at non-registered accounts. US dividends from these tech stocks are characterized as deferred capital gains, so for non-registered investors, that may be a compelling reason to go with HXQ.
E.T.F.'s
COMMENT
Both of these are hedged back to the CAD. In an inflationary environment, you may want a mix of hedged and unhedged. In a more resource oriented market, the CAD will do well. Really with the largest companies in the world. Would suggest to hold both NASDAQ and S&P500 and rebalance once a quarter or year.
E.T.F.'s
DON'T BUY
Unless you're currently in semiconductors and have done well, you're effectively buying top of market. The two big names you want are TSM and Samsung, or Lam Research and Applied Materials on the equipment side. The ETFs are heavily influenced by these 4 names. If you're not there already, don't do it. Semiconductors are very extended right now. You never go bankrupt taking a profit.
E.T.F.'s
BMO NASDAQ 100 HEDGED TO CAD INDEX ETF(ZQQ-T) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 0
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 4
Total Signals / Votes : 4
BMO NASDAQ 100 HEDGED TO CAD INDEX ETF(ZQQ-T) Frequently Asked Questions
What is BMO NASDAQ 100 HEDGED TO CAD INDEX ETF stock symbol?
BMO NASDAQ 100 HEDGED TO CAD INDEX ETF is a Canadian stock, trading under the symbol ZQQ-T on the Toronto Stock Exchange (ZQQ-CT). It is usually referred to as TSX:ZQQ or ZQQ-T
Is BMO NASDAQ 100 HEDGED TO CAD INDEX ETF a buy or a sell?
In the last year, 4 stock analysts published opinions about ZQQ-T. 0 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO NASDAQ 100 HEDGED TO CAD INDEX ETF.
Is BMO NASDAQ 100 HEDGED TO CAD INDEX ETF a good investment or a top pick?
BMO NASDAQ 100 HEDGED TO CAD INDEX ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO NASDAQ 100 HEDGED TO CAD INDEX ETF.
Why is BMO NASDAQ 100 HEDGED TO CAD INDEX ETF stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is BMO NASDAQ 100 HEDGED TO CAD INDEX ETF worth watching?
4 stock analysts on Stockchase covered BMO NASDAQ 100 HEDGED TO CAD INDEX ETF In the last year. It is a trending stock that is worth watching.
What is BMO NASDAQ 100 HEDGED TO CAD INDEX ETF stock price?
On 2023-06-05, BMO NASDAQ 100 HEDGED TO CAD INDEX ETF (ZQQ-T) stock closed at a price of $103.47.
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A good idea a year ago, as the CAD was stronger. A year ago, CAD was $1.27, but now it's at $1.36. CAD is going to work its way back up, and the USD down, though CAD probably won't go beyond $1.38. If you're going to add, just add to the straight QQQ.