Q: Thoughts on the valuation of QQQ right now? It's had a nice run YTD. Is HXQ a good Canadian listed choice?
5i Research Answer:
QQQ is 38X earnings, so certainly not cheap. BUT....tech companies are reporting good growth and solid earnings, better than expected. As interest rates peak valuations may still increase. With anything, expect volatility, but we would still be fine having some exposure to QQQ today. HXQ is a total return ETF and essentially the same as QQQ, with no distributions. But yield on QQQ is only 0.53% so the difference here is negligble, but HXQ still offers a slight tax advantage and no withholding taxes.