-
BMO International Dividend ETF (ZDI $26.81)
-
BMO US Dividend ETF (ZDY $46.88)
-
Invesco S&P 500 Equal Weight Index ETF (EQL $38.67)
ZDI: 9.56%
The combination of ZDY, EQL and EQLI: 15.9%
I have some other US positions while ZDI is currently my only ex North American position.
ZDI has been performing very well YTD with +13% total return (per my purchase cost) while The US EYFs are lower than 0% total returns.
Do you currently see the European momentum building or continuing ? And if so woul it be worth it to flip some of the US ETFs over to ZDI or any other ex-North America ETF ? THank you.
While we cannot personalize responses, this has certainly been part of a broader theme so far this year - foreign investors of US equities have been concerned about the new administration's policies, the threat of tariffs, and some investors are concerned about the end of 'US exceptionalism'. This has caused fund flows out of US equities, particularly the Magnificent 7, and into international equities. International equities are priced well, and so part of this can be justified, but largely, we do not believe this to be the end of US exceptionalism, and we see US equities continuing to be top performers in the coming years.
We could see European stocks continue to rally as this rotation takes place, but we also feel there will be a reversal eventually, and we would want to be positioned in US equities before this takes place. For a long-term hold, we continue to largely prefer US equities.