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Descartes Systems Group Inc. (The) (DSG $123.01)
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BMO Nasdaq 100 Equity Hedged To CAD Index ETF (ZQQ $176.31)
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Vanguard FTSE Developed All Cap ex North America Index ETF (VIU $45.18)
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Select STOXX Europe Aerospace & Defense ETF (EUAD $48.11)
Q: Happy New Year! I have held ZQQ:CA for several years and am looking switch to an unhedged fund that covers the Nasdaq 100. Is this a good time to switch or given that the US dollar is under pressure right now should I wait to make this switch? Is there an ETF you would recommend in the same category?
I am also overweight in Technology and underweight in International holdings. I hold DSG which has been in decline over the past year and was considering a swap for EUAD for the next five years. Other considerations you may suggest would be appreciated.
Thoughts?
Thank you
Dan
PS. I may have not pressed submit on a previous version of this question…. !! If so apologies for the duplication.
I am also overweight in Technology and underweight in International holdings. I hold DSG which has been in decline over the past year and was considering a swap for EUAD for the next five years. Other considerations you may suggest would be appreciated.
Thoughts?
Thank you
Dan
PS. I may have not pressed submit on a previous version of this question…. !! If so apologies for the duplication.
5i Research Answer:
Any switch of course is simply a currency call, and these are always difficult. With the US economy strong and the ongoing trade war and 'Canada annexation' talk, we would still side with the US$ this year. We would suggest ZNQ for an unhedged Nasdaq ETF. 2) We can't really compare a single company DSG to a diversified ETF. EUAD is a solid ETF but specifically focused to the defense sector. We like it, and would be fine with it as a position. But if an investor wanted simple international exposure (not sector specific) we would go with VIU.