Investors looking for an easy way to diversify and take advantage of growing tech stocks south of the border may want to consider buying shares of iShares NASDAQ 100 Index Fund Canadian Dollar Hedged (TSX:XQQ). The fund does a good job of mirroring the returns of the NASDAQ 100 and in five years has grown more than 130%. In the past 12 months, the fund is up 25%.
It also has a low management expense ratio of just 0.39%.
Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB) make up more than one-third of the fund’s holdings. The fund offers a good opportunity for investors looking to take advantage of soaring tech stocks that otherwise would not be available individually on the TSX.
The ETF will also provide you with a way to take advantage of a growing U.S. economy, and the markets still have a lot of room to grow, especially with the recent corporate tax cuts that were put into place.
One thing that is often very important to investors, especially in light of the recent sell-offs we’ve seen in the markets, is stability and diversification. By having an ETF that holds so many different types of stocks, investors will be protected from wild swings in the market while still benefitting from the strong performances of many blue-chip stocks.
ETFs are growing in popularity, and this fund is a great one to add to your portfolio for the long term. With a low management fee, great diversification, and lots of potential for capital appreciation, there’s lots to like about this ETF.