Description

The BMO US Dividend Hedged to CAD ETF (ZUD.TO) is designed to provide investors with access to a portfolio of U.S. companies that pay dividends, with individual holdings weighted according to their yield. The investment strategy employs a rigorous, rules-based approach, evaluating potential U.S. equity investments based on their three-year dividend growth rate, current yield, and payout ratio. Additionally, all selected securities must pass a liquidity screening process. The underlying portfolio is adjusted through rebalancing every May and undergoes a complete reconstitution each November. To protect investors from currency fluctuations, the fund actively hedges its exposure from U.S. dollars back to Canadian dollars. As ZUD.TO is structured as a fund-of-funds, its management fees are offset by (or net of) any fees charged by the underlying funds, preventing duplicate charging.