Technology sector: approx. 60%
Healthcare sector: approx. 15%
Communication services: approx. 10%

Top 3 markets:

1. USA: approx. 70%
2. Canada: approx. 10%
3. Europe: approx. 8%

The BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ) mainly invests in companies listed in the Nasdaq 100 Index. The index is heavily focused on technology, which explains the high share of the technology sector in revenues.

The USA is the dominant market as most companies in the Nasdaq 100 are headquartered there and generate a large portion of their revenues in this market. Canada and Europe follow, with these markets gaining importance due to the international expansion of the companies in the index.

BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ) is an exchange-traded fund (ETF) and not a company that produces physical products.

An ETF is a financial instrument that replicates an index, a commodity, bonds, or a basket of assets like an index fund. The BMO Nasdaq 100 Equity Hedged to CAD Index ETF invests in companies included in the Nasdaq 100 Index and provides hedging against exchange rate risks between the US dollar and the Canadian dollar.

Being an ETF, there are no physical production facilities or products manufactured by this financial instrument.

Growth Strategy: Diversification and Risk Management

The BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ) pursues a strategy aimed at promoting growth through targeted investments in the largest and most innovative companies in the Nasdaq 100 Index. A currency risk management is implemented to minimize the impact of exchange rate changes on Canadian investors.

This strategy allows the ETF to benefit from the performance of leading technology and growth companies while reducing risk through currency fluctuations. This is particularly attractive for Canadian investors who wish to invest in US stocks without being exposed to additional currency risks.

Additionally, in the future, the ETF could seek further growth by adjusting its allocations to new market trends and including companies that benefit from technological innovations and sustainable business practices.

Unfortunately, there is no specific data on which commodities or materials the BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ) imports or where they originate from.

Justification:

An ETF (Exchange Traded Fund) like the BMO Nasdaq 100 Equity Hedged to CAD Index ETF invests in a portfolio of stocks that are included in the Nasdaq 100 Index. This index consists of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.

Since an ETF is a financial product that invests in stocks, the ETF itself does not import commodities or materials. Instead, it holds shares in companies that may import commodities. Information about commodity imports would therefore be found at the level of the individual companies in the index, not at the level of the ETF itself.

For specific information on commodity imports, one would need to consult the annual reports or other publications of the companies included in the Nasdaq 100.

Competitive Advantage: Moderate to Strong (estimated 2026)

The BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ) offers investors the opportunity to invest in the Nasdaq 100 Index while simultaneously minimizing currency risk through hedging to the Canadian Dollar.

The competitive advantage of this ETF lies in its specific focus on Canadian investors who want to invest in the US technology sector without being fully exposed to currency risk. This is particularly attractive in times of high volatility in the foreign exchange markets.

Furthermore, the ETF benefits from the strong performance of the Nasdaq 100 Index, which includes companies with high market capitalization and innovation. The combination of currency hedging and access to leading US technology companies gives the ETF a solid competitive advantage over non-hedged alternatives.

Institutional Investor Share: Estimated at 60-70% (2026)

Insider Buys/Sells: No significant insider activities known (2026)

The institutional investor share in ETFs such as the BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ) is typically high, as these funds are often held by large investment companies and pension funds.

Insider buys and sells are less relevant for ETFs, as these funds do not represent individual company shares but rather a basket of stocks. Therefore, there are usually no insider activities as would be observed with individual stocks.

Market share of BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ): Estimated 3-5% (2026)

Main competitors and their market shares:

1. Invesco QQQ Trust (NASDAQ:QQQ): 15-20%
2. iShares Nasdaq 100 ETF (NASDAQ:QQQM): 10-12%
3. ProShares UltraPro QQQ (NASDAQ:TQQQ): 8-10%
4. Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ): 5-7%
5. First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ:QQEW): 4-6%

Moat Analysis:

The BMO Nasdaq 100 Equity Hedged to CAD Index ETF (ZQQ) offers a specific advantage through currency hedging in Canadian Dollars, which can be attractive for Canadian investors looking to hedge against exchange rate risks. This represents a certain moat, especially for investors residing in Canada or preferring the Canadian Dollar as the base currency.

In comparison, larger ETFs like the Invesco QQQ Trust (QQQ) and the iShares Nasdaq 100 ETF (QQQM) have a significant advantage due to their size, liquidity, and market recognition. These factors provide them with a strong moat in the form of economies of scale and a broader investor base.

Overall, ZQQ has a specific but limited moat, mainly targeting the Canadian currency hedging. However, the larger ETFs have a more comprehensive and stronger moat due to their size and liquidity.

Assets under Management (AUM): 3.5 billion CAD (2025) Expense Ratio: 0.39% (2025) Performance (3 years): 12.4% p.a. (until 2025)

The BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ) offers investors the opportunity to invest in the largest non-financial companies of the Nasdaq 100 Index, with currency risk hedged against the Canadian Dollar.

With assets under management of 3.5 billion CAD, the ETF demonstrates strong market acceptance. The expense ratio of 0.39% is competitive, allowing investors to benefit from the performance of the Nasdaq 100 without paying high fees.

The average annual return of 12.4% over three years indicates a solid performance, benefiting from the strong growth of technology and growth companies in the Nasdaq 100 Index.

Overall, the ETF could be an attractive option for investors looking to participate in the performance of the Nasdaq 100 while minimizing currency risk. However, the decision to invest in this ETF should also depend on individual investment goals and risk tolerance.

Dividend Yield: 1.2% (2026, estimated)

The BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ) typically pays a dividend that depends on the earnings of the companies included in the index. The dividend yield is currently around 1.2%, which is typical for an ETF focused on growth stocks.

The reliability of the payout can be considered moderate. Since the ETF invests in companies included in the Nasdaq 100 Index, the dividend payment heavily depends on the performance of these companies. Growth-oriented companies tend to pay out fewer dividends as they often reinvest profits into growth.

Historically, the ETF has regularly paid dividends, indicating a certain level of stability. However, investors should note that the dividend amount can fluctuate depending on economic conditions and the performance of the underlying companies.