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Experts express varied sentiments on the BMO SP 500 Hedged CAD Index ETF (ZUE-T). While some appreciate the currency hedges provided by ZUE, they emphasize the timing of the broader market's direction as crucial for decision-making. If the market shows signs of recovery leading into a bull phase, heavier investments in NASDAQ-focused ETFs may be warranted for higher beta exposure. Conversely, during potential economic downturns, ZUE's hedging is viewed as a buffer against risks associated with a declining CAD. Strategic positioning is encouraged, suggesting a gradual investment approach alongside market movements. The need for careful consideration of currency exchange fluctuations and investment duration further informs preferences between ZUE and competing ETFs.
The CAD has weakened, and ZSP has the USD in it. So, he much prefers ZUE. Because interest rates are much lower than the U.S., it will cost you 1.25% in hedging. Weigh that 1.25% over, say 5 years, to where the CAD-USD exchange will go. If you expect the CAD to strengthen, then ZUE will give you a better payout than ZSP. Be hedged over not.
With the CAD declining vs. USD, it's time to think about locking in gains. Consider ZSP (S&P) vs. ZUE (S&P currency-hedged) where the difference lies in the exchange rate. Also consider if you're trading in a taxable account or not. As CAD weakens, ZSP (having more US exposure) will outperform. Therefore, ZUE (hedged) will outperform once the CAD gets stronger. In a registered account, sell ZSP and buy ZUE. If in a tax account, this is an individual financial planning decision.
(A Top Pick Oct 20/15. Up 6.81%.) The US stock market is about half of the world’s stock market capitalization, and he likes this one because it is currency hedged. Had felt that the Cdn$ was probably as low as it was going to go relative to the US$, and as the Cdn$ rose in value, you would need a hedge to minimize the losses.
An S&P 500 tracker, hedged to the loonie. It is hedged and he thinks this is a critical difference. If you really want to get into the US market, now is probably a wise time to be doing it with a hedge. For people buying individual US securities, you are going to have a challenge going forward. Even if the US stock market does well, and if the Cdn$ also does well, which he expects, whatever gains you make in the stock market, you will be giving back when you do the currency conversion.
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.
BMO SP 500 HEDGED CAD IDX ETF is a Canadian stock, trading under the symbol ZUE-T on the Toronto Stock Exchange (ZUE-CT). It is usually referred to as TSX:ZUE or ZUE-T
In the last year, 3 stock analysts published opinions about ZUE-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO SP 500 HEDGED CAD IDX ETF.
BMO SP 500 HEDGED CAD IDX ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO SP 500 HEDGED CAD IDX ETF.
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.
3 stock analysts on Stockchase covered BMO SP 500 HEDGED CAD IDX ETF In the last year. It is a trending stock that is worth watching.
On 2025-04-25, BMO SP 500 HEDGED CAD IDX ETF (ZUE-T) stock closed at a price of $75.8.
He likes the currency hedges on both. Why choose? You could own both. If we resume the bull market, and resolve that a recession won't happen until 2026, you probably want to be in the NASDAQ as it has more beta. If we resolve to a harder recession and sooner, the S&P would probably go down less but both would be hit.
We need a little more information on which way the market's going to go. By watching and waiting, you're also going to pay a higher price. Perhaps take a little taster now, and see if there's market follow through. If it goes positive, buy more. If there's a further breakdown, cut bait with a smaller loss.