Choosing individual tech stocks today is much harder than in past, in my view. For those who don't know where to start, or would like a passive investing option, I've got a great Exchange Traded Fund (ETF) option for you.
The BMO NASDAQ 100 Hedged TO CAD ETF (TSX:ZQQ) is a great ETF for Canadian investors, for a few reasons. First, this is a U.S.-based ETF tracking the NASDAQ exchange, providing investors access to 100 of the largest and best-performing companies in the world with currency risk hedged out, and traded on the Toronto Stock Exchange (TSX), great for RRSPs and TFSAs for direct investors.
Second, this ETF is widely diversified, perhaps more than most investors think, given all companies tracked by this ETF are U.S.-based businesses. Since these are the largest 100 companies on the NASDAQ, the geographical/global reach of most of the businesses on the list provides investors with a significant degree of diversification, particularly for investors who are heavily concentrated in Canadian stocks.
As many investors are keenly aware, the largest technology companies on the NASDAQ exchange have provided the vast majority of returns for investors in recent years.
I believe this trend is likely to continue in the years to come, as these tech giants continue to consolidate otherwise fragmented sectors and become the “utilities” or ‘plumbing” of the infrastructure that will drive economies forward in the decades to come.
Invest wisely, my friends.
