BMO NASDAQ 100 HEDGED TO CAD INDEX ETF (ZQQ.TO)

A hedged version of the NAZDAQ-100. It is a way to play the NAZDAQ with pure market exposure, rather than currency, however he is not looking for a big breakout here.

NASDAQ 100 hedged Tech. Previously this was the last thing to break before markets broke. He knows of a well known trader who is now shorting the NASDAQ 100 as of last week. Larry is net short the small NASDAQ companies presently.

Recognize this is not all technology. He doesn’t mind the NASDAQ index. It is hitting new highs and has names in the Tech space, but keep in mind that it does have names in the consumer discretionary space as well as the pharmaceutical biotech space. When you compare it against some of the other pure play technology ETF’s, it hasn’t done as well.

(A Top Pick Feb 17/15. Down 6.46%.) NASDAQ, along with the S&P 500 and everything else has declined. Still likes it.

(A Top Pick Feb 17/15. Down 1.25%.) This is basically the NASDAQ. Hasn’t been buying this, but hasn’t sold any. When there is a recovery, this should do quite well.

He likes to hedge to the Cdn$ where he can. With the currency the way it is, you can lose or gain 10% very quickly. He likes to remove the currency risk if he can.

There are no tax consequences in an RRSP. Outside, foreign dividends are treated as regular income. There tends to be dividends tax withholding but trusts can recover a lot of those.

He is always in favour of seeing US sectors that are hedged. Has had this for a long period of time. He was doing the US$ version, but is now back into buying the Canadian version.

With this you are playing a big position in Apple (AAPL-Q) and also having a US$ hedged doesn’t hurt for a Canadian investor. He is bullish on the US$ so would be more interested in owning Powershare QQQ ETF (QQQ-Q).

This gives you 100 tech stocks. Chart shows a drop off since mid-September and there has been no positive confirmation that it is breaking out yet. Beginning of October is usually the best time for tech stocks but this hasn’t started yet.

(A Top Pick Sept 30/11. Up 33.76%.)

(A Top Pick Sept 30/11. Up 26.56%.)