The wide range of exchange traded funds (ETFs) available to the average retail investor is astonishing, and trying to navigate this world of low-cost highly diversified funds can be overwhelming. In this article, I’m going to discuss one ETF perfect for the defensive risk-averse, income-oriented investor.
The BMO Tactical Dividend ETF (TSX:ZZZD) is a very well-run fund by one of the best money managers in Canada. This ETF offers investors a more tactical approach to dividend options in Canada and around the world. This fund looks to more defensive sectors rather than glamorous ones, meaning investors can receive less volatile returns with owning such an ETF, an extremely valuable attribute.
That said, this fund is under-exposed to higher-growth areas of the economy that have dominated in recent years such as high tech, so investors with greater growth aspirations may rightly choose another ETF that fits such a mandate.
Dividend investors tend to focus less on top line growth and more on cash flow and dividend growth, so this fund certainly checks all of the boxes as far as I’m concerned for investors with such an investing mandate. I find myself in such an investing group and highly recommend this ETF for those concerned about quality rather than hype.
Dividend investing out to be tactical, and in this regard, this ETF is everything a dividend investor needs, in my view.
Invest wisely, my friends.