An index fund is a great way to start investing with just $500. These funds give investors instant diversification by spreading their money across a wide range of stocks, even with a small amount. Instead of picking individual winners and losers, you’re investing in the overall market. Plus, index funds often have low fees, so more of your money stays invested and growing over time. It’s a simple, low-cost, and stress-free way to dip your toes into investing! So, where should investors look?
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Consider everything but Canada
BMO MSCI All Country World ex Canada Index ETF (TSX: ZGQ) is a fantastic option if you’re looking to diversify your investments outside of Canada. This exchange-traded fund (ETF) gives you access to international stocks across developed and emerging markets, so you’re not putting all your eggs in one basket. With ZGQ, you can invest globally without worrying about picking individual stocks in unfamiliar markets. It’s a simple way to spread your risk and gain from the growth of international companies.
The best part? ZGQ has a relatively low management fee of 0.20%, so you’re not paying much to access such a broad range of stocks. This low cost allows your money to work harder for you over time. For Canadian investors, ZGQ is perfect for those wanting to diversify beyond the local market and tap into global growth, all in one neat, easy-to-manage package.
Into holdings
The holdings in ZGQ are packed with some of the largest and most successful companies from around the world, excluding Canada. You get exposure to big players in various industries, from tech giants like Apple and Microsoft to global consumer brands like Nestlé and Toyota. These types of companies tend to be more stable and profitable, offering growth potential that can boost your investment over time.
Another benefit of ZGQ’s holdings is that it includes stocks from both developed and emerging markets. Developed markets, like the U.S. and Europe, provide steady growth and stability. Meanwhile, emerging markets like China and India have the potential for higher growth as their economies expand. This mix of reliable and high-growth opportunities adds balance to your portfolio. So, you’re getting the best of both worlds: a solid foundation with room for excitement and growth!
The nitty gritty
ZGQ has been having quite a strong year, with a year-to-date (YTD) total return of 22.93%, which is a fantastic gain for investors looking for global exposure. The ETF recently closed at $67.48, just shy of its 52-week high of $69.26, showing that it’s been riding the wave of strong international markets. With a 52-week range between $49.52 and $69.26, ZGQ has shown steady growth. Thus making it an appealing option for long-term investors. Despite the recent highs, the ETF’s trading volume is lower than its average, but with over $730 million in net assets, it’s clear that plenty of investors are backing this fund.
One of the great things about ZGQ is its low expense ratio. It also offers a small yield of 1.09%, so you’ll get a little income along the way. With a beta of 1.11, it’s slightly more volatile than the broader market, but not by much. So, you’re getting a solid balance between risk and return. Overall, ZGQ’s performance and value make it a great option if you’re looking to invest globally without breaking the bank on fees or dealing with too much risk!
Bottom line
ZGQ is a solid pick for Canadian investors looking to diversify globally. It has a strong performance and boasts a 22.93% YTD return. Trading near its 52-week high, it’s been on a steady upward trend, and with a low expense ratio, you keep more of your earnings. While offering a modest 1.09% yield, its wide range of international holdings across developed and emerging markets makes it a balanced choice for both growth and stability. Overall, it’s a great way to spread your wings beyond Canada without getting hit with high fees!
