5 ETFs for Growth

5 BMO ETFs to consider for equity exposure

Mar. 22, 2023

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.

Beta: 1.37*

ZEO BMO Equal Weight Oil & Gas Index ETF

Exposure to large cap Canadian energy companies
Effective inflation sensitive portfolio satellite
Equal weight to diversify security concentration

Beta: 1.17*

ZSML BMO S&P US Small Cap Index ETF

ZSML.F BMO S&P US Small Cap Index ETF (Hedged Units)

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

Beta: 1.11*

ZNQ BMO Nasdaq 100 Equity Index ETF

ZQQ BMO Nasdaq 100 Equity Index ETF (Hedged Units)

Exposure to a basket of the largest non-financial listings on NASDAQ
Known as the technology index
Approximate 38% overlap with the S&P 500 Index

Beta: 1.05*

ZUQ BMO MSCI USA High Quality Index ETF

Exposure to strictly American quality companies, designed for investors looking for long term growth
Utilizes Quality factor to screen for companies that have a high return on equity, stable earnings growth, and low financial leverage
Holds approximately 35% in Information technology companies

Beta: 1.03*

ZGQ BMO MSCI All Country World High Quality Index ETF

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
Approximate 38% overlap with the S&P 500 Index

^*3 Year beta measured to the S&P 500 Index for ZNQ,ZQQ, ZUQ as of March 22^nd 2023. The beta for ZSML/ZSML.F was measured to the S&P 500 Index from the inception date of the ETF; February 5^th 2020 as 3 years of history was not available as of March 22^nd 2023. ZEO 3 year beta measured to the TSX Composite index, ZGQ 3 year beta measured to the MSCI World Index.

⁺Also available in hedged version ZUQ.F and US dollar units ZUQ.U Source: Bloomberg March 2023.

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.

S&P^®, S&P/TSX Capped Composite^®, S&P 500^® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). These trademarks have been licensed for use by S&P Dow Jones Indices LLC and sublicensed to BMO Asset Management Inc. in connection with ZSML/ZSML.F. ZSML/ZSML.F is not sponsored, endorsed, sold or promoted by S&P Dow Jones LLC, S&P, or their respective affiliates and S&P Dow Jones Indices LLC, S&P and their affiliates make no representation regarding the advisability of trading or investing in such BMO ETF(s).

NASDAQ^®, and NASDAQ-100 Index^® or NASDAQ-100 Index^® Hedged to CAD, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by the Manager. The ETF(s) have not been passed on by the Corporations as to their legality or suitability. The ETF(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the ETF(s).

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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