BMO’s Top Technology ETFs

Jul. 5, 2023

With the Federal Reserve Central Bank potentially getting closer to the end of their interest rate hiking cycle, 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 2023

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

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.

Changes in rates of exchange may also reduce the value of your investment.

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.

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