(ZDJ) BMO Dow Jones Industrial - Ratings and Ratios

The BMO Dow Jones Industrial Average Hedged to CAD Index ETF, traded under the ticker symbol ZDJ, is a Canadian ETF that tracks the performance of the Dow Jones Industrial Average Index while hedging the US dollar exposure back to Canadian dollars. This allows Canadian investors to gain exposure to the US equity markets blue-chip stocks without the risk associated with currency fluctuations.

The ETF is designed for investors seeking to diversify their portfolios with a basket of 30 of the largest and most liquid US stocks, including household names across various sectors. By hedging the currency risk, the ETF aims to provide a more stable return for Canadian investors, making it an attractive option for those looking to invest in the US market without worrying about exchange rate volatility.

Analyzing the technical data, we observe that the ETF is currently priced at $63.29, slightly above its 50-day Simple Moving Average (SMA) of $63.06, indicating a potential bullish trend. The 20-day SMA is at $61.95, further supporting this observation as the short-term trend is positive. However, the ETF is still below its 200-day SMA of $64.92, suggesting that the long-term trend is still bearish. The Average True Range (ATR) of 1.45, or 2.30%, indicates moderate volatility, and the fact that the current price is between the 52-week high of $69.22 and low of $57.98 suggests that the ETF is in a consolidation phase.

From a fundamental perspective, the Assets Under Management (AUM) of $441.88 million CAD indicate a reasonable level of investor interest in the ETF. While not extremely large, the AUM suggests that the ETF is viable and has a stable investor base.

Forecasting the future performance of ZDJ based on both technical and fundamental data, we can infer that the ETF might continue to consolidate in the short term due to its position relative to the SMAs and the overall market conditions. However, if the Dow Jones Industrial Average Index continues to perform well and the CAD/USD exchange rate remains stable or favorable, ZDJ could see a push towards its 52-week high. Conversely, a downturn in the US equity market or adverse currency movements could lead to a decline. Investors should closely monitor the ETFs price action relative to its SMAs and the overall market sentiment to make informed decisions.