BMO’s Top Technology ETFsMay 9, 2023
With Q1 tech earnings well underway and a potential pause on the horizon from the Federal Reserve Central Bank, investors may want to consider allocating towards U.S technology names.
BMO presents 3 ETFs to utilize to gain exposure to technology names:
ZNQ/ZQQ – BMO Nasdaq 100 Equity Index ETF/BMO Nasdaq 100 Equity Index ETF (Hedged Units)
- Exposure to a basket of the 100 largest non-financial listings on Nasdaq
- Known as the technology index; ~33 % allocation to FAANG stocks, Facebook (Meta), Apple, Amazon, Netflix and Google
- The Nasdaq has rebounded off 2022 lows and has recently found support in strong Q1 earnings
ZWT – BMO Covered Call Technology ETF
- Access to a diversified portfolio of North American information technology and technology-related companies with a covered all overlay to generate income
- Tech sector remains well below 2021/2022 levels; this could serve as a good entry point into the space while getting paid via monthly distributions to hold
- Volatility amongst equities in the sector enhances yield generation from covered call writing within the portfolio
ARKK – BMO ARK Innovation Fund ETF Series
- Capture disruptive innovation that spans across different market capitalizations and sectors with low overlap to broad-market indices and further diversification for your portfolio
- Invests in five major innovation platforms that are evolving and converging at the same time: Artificial Intelligence, Energy Storage, Robotics, DNA Sequencing and Blockchain Technology
- Actively managed by ARK Invest’s founder and Chief Investment Officer, Cathie Wood; trades in CAD dollars over the TSX
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