Industry Distribution:

• Financial Services: approx. 30%
• Energy: approx. 15%
• Materials: approx. 13%

TOP 3 Markets and their Shares:

• Canada: approx. 90%
• USA: approx. 5%
• International Markets: approx. 5%

The BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) is heavily focused on the Canadian market, as evidenced by the high share of approximately 90% of revenues coming from Canada. The financial services sector dominates the index, followed by energy and materials, which is typical for the Canadian economy.

International markets and the USA play a smaller role, emphasizing the ETF's focus on the domestic market. This distribution reflects the structure of the underlying S&P/TSX Capped Composite Index, which tracks the performance of the largest companies on the Toronto Stock Exchange.

BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) is an exchange-traded fund (ETF) and not a company that produces physical products.

This ETF tracks the S&P/TSX Capped Composite Index, which includes a wide range of Canadian stocks. As a financial fund, it does not produce physical products itself. Instead, it invests in a variety of companies included in the index, providing investors with the opportunity to invest in the Canadian stock market.

Current Strategy: Diversification and Cost Efficiency

The BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) follows a passive investment strategy aiming to replicate the performance of the S&P/TSX Capped Composite Index. This strategy relies on broad diversification within the Canadian stock market to spread risk and achieve stable returns.

For future growth, the ETF focuses on keeping costs low to maximize net returns for investors. This is achieved through optimizing replication methods and minimizing tracking difference.

Additionally, the ETF could benefit from a positive development in the Canadian stock market, especially in sectors like commodities and finance, which are traditionally well-represented in the index. A recovery or growth in these sectors would have a positive impact on the ETF's performance.

Note: The BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) is an exchange-traded fund that tracks the S&P/TSX Capped Composite Index. This index includes a wide range of Canadian companies from various sectors. Therefore, the ETF itself does not import any commodities or materials, but invests in companies that could do so.

Commodities and Materials:

• Canada is known for exporting commodities such as oil, gas, minerals, and wood. Companies in ZCN could operate in these sectors.

Countries of Origin:

• Companies in the index could import commodities from countries like the USA, China, Brazil, and Australia, depending on their specific business models and sectors.

Since the ETF itself does not import commodities but invests in companies that could do so, the exact list of imported materials and their origin depends on the individual companies in the index. For example, companies in the energy sector could import oil and gas, while companies in the industrial sector could source metals and other commodities.

Market Share: 20% in the Canadian ETF market (2024)

The BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) is one of the leading ETFs in Canada that tracks the S&P/TSX Capped Composite Index. The competitive advantage of this ETF lies in its broad diversification and low cost structure, making it attractive to investors.

The ETF benefits from the strong brand and distribution network of BMO Global Asset Management, helping it maintain a significant market share. Additionally, the ETF is a preferred choice for investors looking to invest in the Canadian market due to its liquidity and close tracking of the underlying index.

Overall, the BMO S&P/TSX Capped Composite Index ETF offers a solid competitive advantage through its established market presence and support from one of the largest banks in Canada.

Institutional Investor Share: Estimated over 70% (2025)

Insider Buys/Sells: No significant insider transactions known (2025)

The BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) is an exchange-traded fund that tracks the S&P/TSX Capped Composite Index. Being an ETF, the institutional investor share is typically high, as many institutional investors use ETFs as part of their investment strategy.

Insider buys or sells are less relevant for ETFs, as they do not represent individual companies but track an index. Therefore, there are usually no significant insider transactions reported for ETFs.

Market share of BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN): approx. 25% (2025, estimated)

Top competitors and their market share:

1. iShares S&P/TSX Capped Composite Index ETF (TSX:XIC): approx. 30%
2. Vanguard FTSE Canada All Cap Index ETF (TSX:VCN): approx. 20%
3. Horizons S&P/TSX 60 Index ETF (TSX:HXT): approx. 15%
4. Mackenzie Canadian Equity Index ETF (TSX:QCN): approx. 5%
5. RBC Canadian Equity Index ETF (TSX:RCU): approx. 5%

The BMO S&P/TSX Capped Composite Index ETF (ZCN) holds a significant market share of around 25%, making it one of the leading ETFs in Canada. The biggest competitor is the iShares S&P/TSX Capped Composite Index ETF (XIC) with a market share of about 30%.

ZCN's economic moat is moderate as it is an index ETF tracking the S&P/TSX Capped Composite Index. The main advantage lies in its broad diversification and low cost structure. However, competitors offer similar benefits, intensifying the competition.

Overall, the competing companies do not have a significant advantage that sets them apart from ZCN. The market for Canadian index ETFs is highly competitive, with differences often lying in fee structures and brand awareness.

Fund Size: CAD 6.5 billion (2025) Annual Total Expense Ratio: 0.06% (2025) Average Annual Return of the Last 5 Years: 7.8% (2025)

The BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) is a broadly diversified fund that invests in a variety of Canadian companies. With a fund size of CAD 6.5 billion, the ETF demonstrates a strong market presence. Its low total expense ratio of 0.06% makes it a cost-effective investment option.

Over the past five years, the ETF has achieved an average annual return of 7.8%, indicating solid performance. This return reflects the overall performance of the Canadian stock market as the ETF tracks the S&P/TSX Capped Composite Index.

For investors interested in long-term investment in the Canadian market, ZCN offers an attractive opportunity to benefit from diversification and stable returns. The low costs and broad diversification of investments minimize risk and make it a solid choice for a balanced portfolio.

Dividend Yield: 2.8% (estimated for 2025) Payout Frequency: Quarterly

The BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) regularly pays out dividends. The distributions typically occur quarterly and are relatively reliable as they are based on the dividends of the companies included in the index.

The dividend yield of approximately 2.8% is an estimate based on historical data and current market trends. Since the ETF tracks the S&P/TSX Capped Composite Index, the reliability of the payouts depends on the dividend policies of the companies included in the index. Historically, the ETF has maintained a stable dividend policy, indicating a certain level of reliability.