(ZQQ) BMO NASDAQ 100 Equity (CAD - Ratings and Ratios

The BMO Nasdaq100 Equity Hedged to CAD Index ETF is designed to mirror the performance of the NASDAQ-100 Index, with its U.S. dollar exposure hedged back to Canadian dollars, thereby minimizing currency risk for Canadian investors. This ETF achieves its objective by holding the constituent securities of the NASDAQ-100 Index in proportion to their representation in the index.

The NASDAQ-100 Index is a basket of the 100 largest and most actively traded U.S. companies listed on the NASDAQ stock exchange, with a heavy weighting towards technology and growth stocks. By investing in ZQQ, Canadian investors gain exposure to these leading U.S. companies, including tech giants like Apple, Microsoft, and Alphabet, while mitigating the impact of USD/CAD exchange rate fluctuations.

Analyzing the technical data, we observe that the ETFs price is currently above its 20-day, 50-day, and 200-day simple moving averages (SMA20, SMA50, SMA200), indicating a positive trend. The Average True Range (ATR) is 2.05, representing 1.35% of the last price, suggesting moderate volatility. Given the 52-week high and low, the ETF is near its all-time high, indicating strong performance over the past year.

From a fundamental perspective, the Assets Under Management (AUM) stand at CAD 2006.05 million, indicating a sizable and liquid ETF. The funds focus on the NASDAQ-100 Index, which is known for its growth and innovation, positions it well for potential long-term growth, especially if the tech sector continues to outperform.

Forecasting future performance using both technical and fundamental data, we can anticipate that ZQQ will continue on its upward trajectory if the NASDAQ-100 Index maintains its momentum. The hedging to CAD reduces currency risk, making it an attractive option for Canadian investors seeking exposure to U.S. tech and growth stocks. However, investors should be cautious of potential volatility and market corrections. A break below the SMA50 could signal a shift in trend, while sustained AUM growth and a continued rise above the SMA20 could reinforce the bullish outlook.