0.43 (0.62%) 1d
ZUE vs. XSP Almost identical. Track the same index, structure is the same by holding the 500 stocks in the S&P 500 and applying the currency hedge so movements in the CAD don't impact the NAV as much. Long term, did a good job insulating from currency moves. XSP is 10 bps, ZUE is 9. Long term, US large caps should be the core of a lot of portfolios. Risky, as it was this year, but you should still have it.
This was actually a technical question not related specifically to ZUE. The caller asked what is the difference between a Canadian hedged ETF and a Canadian unhedged ETF. This is basically a currency question. The hedged gets exposure in U.S. with dollars converted to Canadian. With the unhedged you're buying in one currency and that's that. With hedged you can take the currency conversion out of the equation. He thinks the Canadian dollar will appreciate.
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.

(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.


This is a hedged product which means you are factoring out the Cdn/US dollar issue. He would go unhedged, because he believes that the Cdn$ is likely to continue to be weak compared to the US$.


There is also the XSP-T. He is fully hedged against the US$. ETFs are the only way to do this.


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.


S&P 500 Hedge to CAD Index (ZUE-T) or S&P 500 Index ETF (ZSP-T)? Of the 2, he prefers ZSP a bit more because of the broad Standard & Poor’s benchmark that everyone understands. Not sure what the benchmark for this one is.

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Ranking : 1 out of 5

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Stockchase rating for BMO SP 500 HEDGED CAD IDX ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BMO SP 500 HEDGED CAD IDX ETF(ZUE-T) Frequently Asked Questions

What is BMO SP 500 HEDGED CAD IDX ETF stock symbol?

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

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On 2024-02-20, BMO SP 500 HEDGED CAD IDX ETF (ZUE-T) stock closed at a price of $69.27.