5 ETFs for Growth
5 BMO ETFs to consider for equity exposureJun. 23, 2022
BMO ETFs presents our top 5 picks for investors looking to add equity growth exposure in their portfolios. With market volatility, opportunity presents itself for entry points on the dips.
- Exposure to large cap Canadian energy companies
- Effective inflation sensitive portfolio satellite
- Equal weight to diversify security concentration
- Exposure to a basket of megatrends: genomics, fintech, next generation internet, tech and industrial innovation
- Sector agnostic exposure to long term growth themes
- 29% overlap with the NASDAQ 100 Index
- Exposure to a basket of the largest non-financial listings on NASDAQ
- Known as the technology index
- 38% overlap with the S&P 500 Index
- Exposure to emerging companies early in the growth cycle
- Screens for liquidity and financial viability
- Holds a basket of 600 securities highly diversified across sectors and companies
- Exposure to developed and emerging markets quality companies
- Screens for high return on equity, stable earnings growth, and low financial leverage
- Holds approximately 1/6 of the listings in MSCI ACWI
* 3 Year beta measured to the S&P 500 Index for ZEO, ZNQ, ZQQ & ZGQ. ZSML/ZSML.F beta measured to inception date: Feb. 5, 2020, ZINN measured to inception date: Jan 20, 2021.
This communication is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.
The BMO ETFs or securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. (“MSCI”), and MSCI bears no liability with respect to any such BMO ETFs or securities or any index on which such BMO ETFs or securities are based. The prospectus of the BMO ETFs contains a more detailed description of the limited relationship MSCI has with BMO Asset Management Inc. and any related BMO ETFs.
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The payment of distributions is not guaranteed and may fluctuate. The payment of distributions should not be confused with an Exchange Traded Fund’s performance, rate of return or yield. If distributions paid by the Exchange Traded Fund are greater than the performance of the Exchange Traded Fund, your original investment will shrink. Distributions paid as a result of capital gains realized by an Exchange Traded Fund, and income and dividends earned by an Exchange Traded Fund are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero. Please refer to the Exchange Traded Funds, distribution policy in the prospectus.
Commissions, management fees and expenses (if applicable) all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.
BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.
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