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BMO SPDR Consumer Staples Select Sector Index ETF (ZXLP)
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BMO SPDR Consumer Discretionary Select Sector Index ETF (ZXLY)
Q: The factsheet of these ETF’s says that they have 2 and 4 million dollars of assets under management. How will these ETF’s gain popularity over the coming years and will that push the price up?
5i Research Answer:
Sector specific funds can be a tough sell in Canada. But some investors prefer trading in Canada. Because of the underlying assets (very large and liquid) we would not really expect increased demand to have a price impact on units. Prices will continue to be driven by the underlying performance of the respective sectors. We doubt either of these will ever be 'really' big, but they should be able to garner some assets over a longer period of time. But we would be cautious against buying until they are at least $50M.