Q: For smaller accounts looking at this new ETF - QMVP. New product but showing 200+M in AUM , what do you think as a core holding for growth?
5i Research Answer:
QMVP is a technology 'rules base' ETF (fees 0.19%).
QMVP tracks the Solactive HAMILTON CHAMPIONS™ U.S. Technology Index, emphasizing high-profitability tech firms like parts of the Magnificent 7 while capping individual holdings at 2-6% to reduce concentration risk from mega-caps. Launched recently, it offers unhedged USD exposure traded in CAD on the TSX with a low 0.19% management fee. The underlying index has shown hypothetical back-tested outperformance vs. the Technology Select Sector Index since 2006 (using real market data), driven by profitability focus over pure size. We think its focus and strategy are fine but it is of course to early to gauge performance. But the asset growth shows investors are very interested here.