Q: Your thoughts on BMO ZLSU ETF for a long term hold? Any concerns?
5i Research Answer:
ZLSU takes an active approach and uses a long/short strategy on US equities. It has a decent AUM of $87M, a distribution yield of 1.1%, and an MER of 0.72%. Its correlation with the broader markets is fairly high, and since its inception it has slightly underperformed the markets. During the April drawdown, it did see a slightly lower decline than the S&P 500, but overall it does not have much history and we would prefer exposure to the broader markets. For a long/short ETF, we would prefer FTLS due to its longer history and higher AUM.