Top 5 U.S Equity ETF Ideas

As earnings season kicks off, BMO presents five ETFs to get exposure to U.S equities:

BMO MSCI USA High Quality Index ETF (Tickers: ZUQ/ZUQ.F/ZUQ.U)

This core solution provides exposure to high-quality growth companies — defined as market leaders with durable business models and sustainable competitive advantages.
A well-diversified basket of blue-chip companies with the potential for greater long-term growth and less volatility than the broad market over time.
Companies typically have high return on equity (ROE), stable earnings across changing business cycles, and strong balance sheets with low financial leverage.

BMO Nasdaq 100 Equity Index ETF/BMO Nasdaq 100 Equity Hedged to CAD Index ETF (Tickers: ZNQ/ZQQ/ZNQ.U)

An exposure to a basket of the 100 largest non-financial listings on the NASDAQ.
The index is led by mature companies with a proven track record of growing earnings, well-capitalized balance sheets and compelling competitive advantages.
Consider the Nasdaq 100 Index for global diversification as this U.S. index receives approximately 43% of its sales from international sources of revenue.¹

BMO Covered Call Technology ETF (Ticker: ZWT)

Add alpha and income to your portfolio and gain access to a diversified basket of large-cap North American Information Technology/Technology-related companies with a covered call overlay to generate additional yield on top of dividends.
Capitalizes on several emerging opportunities, including generative AI, cloud computing, and semiconductor growth.
This portfolio provides emphasis on high-quality, large-cap technology names to enhance the overall stability and risk profile of the ETF while still providing an attractive yield boost relative to the technology index.

BMO S&P 500 Index ETF (Tickers: ZSP/ZUE/ZSP.U)

Utilized as a core building block to a portfolio and is one of the largest most liquid ETFs in Canada.²
The S&P 500 is considered one of the most cost efficient and resilient indexes in the world with an excellent track record.
With a 30% allocation to the Technology sector, investors can capitalize on innovation stocks in the U.S with the diversification support of the largest companies in the world.

BMO Low Volatility US Equity ETF (Tickers: ZLU/ZLU.U/ZLH)

Well diversified solution that uses beta³ as the primary investment selection and weighting criteria. Low beta investments are less volatile than the broad market and can be considered defensive investments.
Over the long-term, low beta stocks may benefit from smaller declines during market corrections and still increase during advancing markets, providing the potential for stable and predictable returns.
Low beta stocks tend to be more mature and provide higher dividend yields than the broad market, which can act as a cushion to market fluctuations.

^*Performance:

Fund Name	Ticker	YTD (%)	6 mo (%)	1 Year (%)	3 Year (%)	5 Year (%)	Since Inception (%)	Inception Date
BMO MSCI USA High Quality Index ETF	ZUQ	22.54	22.54	35.01	14.77	17.98	16.87	5-Nov-14
BMO Nasdaq 100 Equity Hedged to CAD Index ETF	ZQQ	16.82	16.82	28.72	9.77	19.77	17.79	19-Jan-10
BMO Covered Call Technology ETF	ZWT	31.75	31.75	51.73	18.36		19.58	26-Jan-21
BMO S&P 500 Index ETF (CAD)	ZSP	18.87	18.87	28.19	13.31	15.66	17.50	14-Nov-12
BMO Low Volatility US Equity ETF (CAD)	ZLU	8.12	8.12	8.68	8.73	8.47	13.28	19-Mar-13

Source: Bloomberg, as of June 30^th 2024

¹Bloomberg, as of June 30, 2024

² BMO Global Asset Management/Morningstar, as of June 30, 2024

³Beta: A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

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Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus of the BMO ETFs 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.

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