The Nasdaq Composite has been struggling over the past year, falling 34% in value as investors have been dumping growth stocks left and right. Generally, the Nasdaq is a good place for growth investors to put their money into. Historically, those growth-oriented stocks outperform safer, more conservative investments.
Now may be a good time for investors to consider betting on the Nasdaq’s recovery. A good way to do so is by investing in a top exchange-traded fund (ETF) such as the BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ). The fund has an expense ratio of 0.39% and it tracks the 100 largest non-financial stocks on the Nasdaq. The top three holdings are among the biggest and safest names in tech: Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN). And as a plus, the fund says that, “the U.S. dollar currency exposure is hedged back to the Canadian dollar.”
The stocks the fund holds are all based in the U.S. and the ETF gives investors an easy way to bet on the success of the tech industry.
Even though the past year has been a rough one, consider that the Nasdaq’s 10-year returns are around 230% versus 160% for the larger and more diversified S&P 500. And the Nasdaq 100 ETF’s returns during that stretch are even higher at more than 260%. By investing in the best and brightest stocks on the Nasdaq, investors can put themselves in an excellent position to benefit from the inevitable recovery once it takes place by investing in the BMO Nasdaq 100 Equity Hedged to CAD Index ETF.