-
BMO Nasdaq 100 Equity Hedged To CAD Index ETF (ZQQ)
-
INVESCO QQQ Trust (QQQ)
-
Horizons NASDAQ-100 Index ETF (HXQ)
Q: Have a small position in ZQQ and an almost full in HXQ. For an RRSP which would be your choice of those 2? or another?
5i Research Answer:
ZQQ has an AUM of $1.5B and an MER of 0.39%, while HXQ has an AUM of $0.5B and a lower MER of 0.28%. The ZQQ is hedged to the CAD which means that the US dollar exposure is hedged back to CAD, eliminating any potential gains in currency fluctuations between the two. This is in contrast to HXQ which does not hedge to CAD, and has outperformed ZQQ as a result. Due to its lower MER and unhedged properties, we prefer HXQ here, although it does have a lower AUM. If the currency denomination is not a factor, we would prefer QQQ.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in QQQ.