This Week in ETFs: From February 2-6
AI is Spreading — Earnings Should Follow
Jan 21, 2026BEYOND THE MAGNIFICENT SEVEN: THE CASE FOR EQUAL WEIGHT
A long equal-weight position in U.S. equites cuts reliance on a small group of names needing to remain perfect. And as AI-related technologies diffuse into other sectors, there’s a strong case for broader earnings growth this year.
INTRODUCING ZEQL, ZDIV AND ZESM
An equal-weight exposure to U.S. equities meets dependable cash flow generation from Canada’s best dividend payers1 as well as diversification and growth potential among EAFE small- to mid-cap stocks.
The result — reduced concentration risk at a low-cost entry point:
- BMO MSCI USA Equal Weight Index ETF (Ticker: ZEQL)
o Management Fee: 0.05% | Risk Rating: Medium2
- BMO MSCI Canada IMI High Dividend Yield Index ETF (Ticker: ZDIV)
o Management Fee: 0.09% | Risk Rating: Medium2
- BMO MSCI EAFE Small-Mid Cap Index ETF (Ticker: ZESM)
o Management Fee: 0.35% | Risk Rating: Medium2
OUR TOP YIELD PICKS IN THIS MARKET
During periods of market stress, blue chip dividend payers can provide both defense and income. Our six ETFs yielding 6%+ use covered call and premium yield strategies to help smooth returns while delivering enhanced monthly cash flow.
6 BMO ETFs Yielding 6% or More3
REGISTER NOW – HIGH VALUATIONS, LOW VIBES
Please join us for a macro update on earnings, key global themes to watch and more in a special Webinar presentation from BMO ETFs Managing Director and Head of ETF and Alternatives Strategy, Bipan Rai.
When: Thursday, February 12 at 4 p.m. EST
1 Source: MSCI Canada IMI High Dividend Yield Index Methodology, as of January 2026.
2 All investments involve risk. The value of an exchange-traded fund (ETF) can go down as well as up and you could lose money. The risk of an ETF is rated based on the volatility of the ETF’s returns using the standardized risk classification methodology mandated by the Canadian Securities Administrators. Historical volatility doesn’t tell you how volatile an ETF will be in the future. An ETF with a risk rating of “low” can still lose money. For more information about the risk rating and specific risks that can affect an ETF’s returns, see the BMO ETFs’ prospectus.
3 Annualized Distribution Yield as of January 31, 2026. This yield is calculated by taking the most recent regular distribution, or expected distribution, (excluding additional year-end distributions) annualized for frequency, divided by current NAV. The yield calculation does not include reinvested distributions. Source: BMO Global Asset Management.
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