BMO MSCI USA High Quality ETF (ZUQ-T)

Suspects it mirrors S&P 500 returns. Good holding. Good exposure across blue chip companies.

Screens companies for quality factors: low leverage, consistent earnings, ROE, etc. Top names include LLY, META, NVDA, MSFT, Visa, MA, UNH. Likes the space. Among the factors of quality, value, growth and momentum, quality is one of the better factors today.

Was great 3-5 years ago or longer. The boom is over. He just saw a market sell signal on Friday.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A growth to value shift is difficult to predict with certainty. Tech does not have to slow down post covid, and if global growth does not ramp up, investors will still be willing to pay a premium for growth. Unlock Premium - Try 5i Free

Likes the quality space. Apple, Microsoft, Visa, JNJ, Mastercard. A US version is coming out soon. QUAL tracks the same thing, but in US funds, with a MER of 15 bps.

The fund is saying that they have taken the S&P500 and dropped off lower quality stocks. It has many big tech companies. If you didn't own it, he wouldn't buy it. He would prefer EQL, which has risk that is spread over.

An ETF that invests in companies with very, very high quality aspects, whether it is from earnings or dividends, as well as real quality by S&P Research. The flip side is that some of the names are a bit lofty in terms of valuations. He likes this because there is a shift towards higher-quality names. As you move into the later stages of the stock market economy the large cap high-quality names tend to do better than the lower quality names.

He doesn’t know this ETF, but ETF’s can be great. It depends on the size of your portfolio and what you are trying to achieve. Investing in US dividend stocks right now, as a blanket, you are investing in a pretty high market. He would recommend that you be more of a stock picker. If you own this and are prepared to hold for the long-term, you will be fine.

Fairly new and not a lot of volume. Doesn’t think a lot of people realize that the US market hasn’t really been moving for about 5-6 months. These are all terrific holdings, and he wouldn’t be concerned. Eventually the volume will pick up on this and share creation will follow suit.

Has done well. It is up 16.2% over the last 12 months. This is heavily into the US, but doesn’t think it is hedged in terms of currency, which is probably a good thing. Relatively reasonable in terms of pricing.

When you trade illiquid, wide-spread-trade ETFs, don’t go market. Use a limit order. ZUQ-T is a smart beta ETF. A qualitative approach to the top 1000 US large caps, filtered for all the normal metrics. It is the top 100 of those names.

Smart index ETF. It is called the quality index. It finds better cash flows and fundamentals. It is a quality holding and will give you good exposure to the US market. In the long run you will have a better return relative to the index.