{"id":38436,"date":"2015-05-20T20:50:00","date_gmt":"2015-05-20T20:50:00","guid":{"rendered":"https:\/\/wp2.inovestor.com\/2015\/05\/zuq-bmo-msci-usa-high-quality-index-etf\/"},"modified":"2022-07-06T21:18:28","modified_gmt":"2022-07-06T21:18:28","slug":"zuq-bmo-msci-usa-high-quality-index-etf","status":"publish","type":"post","link":"https:\/\/www.inovestor.com\/en-ca\/2015\/05\/zuq-bmo-msci-usa-high-quality-index-etf\/","title":{"rendered":"ZUQ – BMO MSCI USA High Quality Index ETF"},"content":{"rendered":"

For this week\u2019s content analysis we employed StockPointer\u2019s PFScan tool to replicate and analyze an ETF, BMO\u2019s \u201cMCSI USA High Quality Index ETF\u201d (ZUQ). Relatively recent, this exchange-traded fund was introduced November 5th, 2014. You will find attached ZUQ’s PFscan Download <\/a> \u00a0and its SPscore table Download <\/a> .<\/p>\n

The first, and most important, factor that drew our attention in assessing ZUQ was that 94% of the fund\u2019s constituents generate a positive EVA, offering an EPI (economic performance index) of 1.0 or higher. From this observation alone we can agree that this is indeed a \u201chigh quality\u201d portfolio, particularly if measured against an ETF replicating the total S&P500 index\u2014only 67% of the S&P500\u2019s constituents generate positive EVA.<\/p>\n

Given the higher quality, as demonstrated by ZUQ\u2019s higher average and frequency of strong economic performance, we could reasonably expect the ETF to trade at a higher premium to its underlying intrinsic value. This isn\u2019t the case. The weighted average P\/IV for ZUQ is 1.55, against 2.0 for the S&P500*.<\/p>\n

We\u2019ll also note the different sector distribution offered by ZUQ. Relative to the S&P500, the healthcare, consumer goods, and IT sectors are more heavily represented. At the same time, ZUQ\u2019s exposure to the financials and energy sectors is slighter, while its holdings in the telecomm and utilities are zero.<\/p>\n

If you are searching for an American fund \u2018compatible\u2019 with StockPointer and the EVA methodology, while being favorably positioned relative to its principle peer index, ZUQ might be a \u201chigh quality\u201d solution. Please note that we also presented, in a similar commentary, BMO\u2019s \u201cLow Volatility Canada ETF\u201d (ZLB) on February 18th, 2015. If you hadn\u2019t had the chance to read that then, here is the link<\/a>.<\/p>\n

Keep in mind that StockPointer gives you the opportunity, using the PFScan function, to create and analyze a mutual fund (equity portion) or ETF that you might consider integrating to client portfolios.<\/p>\n

For more information on ZUQ, here is the link<\/a>\u00a0to BMO’s website.<\/p>\n

*Extreme and\/or irrelevant data points were ignored in performing the calculation.<\/em><\/h5>\n","protected":false},"excerpt":{"rendered":"

For this week\u2019s content analysis we employed StockPointer\u2019s PFScan tool to replicate and analyze an ETF, BMO\u2019s \u201cMCSI USA High Quality Index ETF\u201d (ZUQ). Relatively recent, this exchange-traded fund was introduced November 5th, 2014. You will find attached ZUQ’s PFscan Download \u00a0and its SPscore table Download . The first, and most important, factor that drew […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[167,168,209],"class_list":["post-38436","post","type-post","status-publish","format-standard","hentry","category-intelligence","tag-etf","tag-etfs","tag-zuq"],"acf":[],"yoast_head":"\nZUQ - BMO MSCI USA High Quality Index ETF - Inovestor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.inovestor.com\/en-ca\/2015\/05\/zuq-bmo-msci-usa-high-quality-index-etf\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ZUQ - BMO MSCI USA High Quality Index ETF\" \/>\n<meta property=\"og:description\" content=\"For this week\u2019s content analysis we employed StockPointer\u2019s PFScan tool to replicate and analyze an ETF, BMO\u2019s \u201cMCSI USA High Quality Index ETF\u201d (ZUQ). 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