Daily Macro

Macro Notes - Value for the Win

June 04, 2026

Saakshi Mehta

Vice President, ETF & Alternatives Strategy

BMO MSCI USA Value Index ETF (ZVU) is up 50% year-to-date as of Tuesday. This shouldn’t come as a surprise when you see the year-to-date returns of ZVU’s top 5 holdings (Chart 2). The story here is almost entirely a semiconductor concentration that has paid off dramatically.

The fund’s gain is almost entirely explained by its two largest positions: Micron (up +275%) and Intel (up +200%). Applied Materials and Cisco add further meaningful contributions. All four of these are semiconductor or semiconductor-adjacent names that have surged driven by unwavering AI infrastructure demand, semiconductor upcycle, and strong earnings revisions in the space.

Given the bottlenecks that exist in the semiconductor space, we expect investor enthusiasm to remain elevated. At the very least this should continue to keep ZVU well supported.

Chart 1: ZVU is up 50% Year-to-Date

Chart 2: Year-to-Date Returns of Top 5 Holdings

*Numbers shown in brackets represent the corresponding weights within the index.
Source: Bloomberg, BMO GAM

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