BUY CANADIAN: 3 ETFS TO KEEP YOUR MONEY AT HOME
Canadian investors can put their elbows up too and push back against Donald Trumpâs idiotic tariffsâby keeping their money in our own markets.
One of the simplest ways to do that is by investing in Canada-focused exchange-traded funds (ETFs). These are low-cost investment products that let you own a basket of stocks or bonds all in one trade.
And when you choose Canadian-domiciled ETFs, youâre not just avoiding unnecessary foreign exposureâyouâre also sidestepping currency risk and potential tax headaches.
Today, Iâve got three picks from BMO Global Asset Management to help you do just that: a growth ETF, a balanced ETF, and an income-focused ETF, all designed to help you invest at home with confidence.
The growth pick
BMO S&P/TSX 60 Index ETF (TSX:ZIU) is a straightforward way to get passive exposure to Canadaâs largest blue-chip companies.
It tracks the S&P/TSX 60 Index, a market cap-weighted portfolio of the 60 biggest publicly traded Canadian firmsâthink railways, banks, and pipelines. If you want a set-it-and-forget-it approach to investing in Canadaâs corporate giants, ZIU delivers.
It comes with a reasonable 0.15% management expense ratio (MER), and while itâs not designed for income, it still offers a solid 2.65% distribution yield, paid out quarterly.
The balanced pick
If you’re looking for a mix of growth and income, BMO Canadian Dividend ETF (TSX:ZDV) is a solid option.
This fund invests in Canadian dividend-paying stocks using a rules-based methodology that screens for a companyâs three-year dividend-growth rate, current yield, and payout ratioâstriking a balance between quality, income, and sustainability.
ZDV currently offers an annualized distribution yield of 3.70% (as of March 24, 2025) and pays out monthly, making it an attractive choice for investors who want steady cash flow alongside long-term equity growth. The 0.39% MER is a fair price for the added selectivity and diversification.
The income pick
If youâre less concerned about share price growth and more focused on maximizing monthly income, consider BMO Canadian High Dividend Covered Call ETF (TSX:ZWC).
This ETF uses the same stock selection rules as ZDV, targeting Canadian dividend stocks based on yield, growth, and payout ratio, but adds a covered call strategy on top.
By writing call options on its holdings, ZWC generates extra income in exchange for giving up some upside when markets rally. Itâs a trade-off: less growth potential but more consistent cash flow.
As of March 24, 2025, ZWC pays an annualized distribution yield of 6.64%, with monthly payouts, and charges a 0.72% MER for the strategy.
The post Buy Canadian: 3 ETFs to Keep Your Money at Home appeared first on The Motley Fool Canada.
Should you invest $1,000 in Bmo Canadian Dividend Etf right now?
Before you buy stock in Bmo Canadian Dividend Etf, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now⦠and Bmo Canadian Dividend Etf wasnât one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the âeBay of Latin Americaâ at the time of our recommendation, youâd have $20,697.16!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month â one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.
See the Top Stocks * Returns as of 3/20/25
More reading
- Hereâs How Many Shares of ZWC You Should Own to Get $500 in Monthly Dividends
- Looking for Market Defence? Canadian Dividend ETFs Are a One-Stop Solution
- Here Are My 2 Favourite ETFs for 2025
- Canadians: Here’s How Much You Need in Your RRSP to Retire
- 1 Top High-Yield Dividend ETF to Buy to Generate Passive Income
Fool contributor Tony Dong has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
2025-03-26T15:53:29Z
