Topic: How To Invest

Q: Pat: I recently bought some of the BMO International Dividend ETF. Could you give me your opinion on this ETF? I’ve been an Inner Circle member for years and am very happy with your advice.

Article Excerpt

A: BMO International Dividend ETF, $24.05, symbol ZDI on Toronto (Units outstanding: 20.8 million; Market cap: $500.2 million; www.bmoetfs.ca), offers exposure to a portfolio of high-yield dividend-paying companies in developed markets. The fund excludes North American firms but can include foreign ADRs trading on U.S. exchanges. The ETF’s manager looks at the three-year dividend growth rate, yield, and payout ratio of the stocks it selects. Its holdings also need to meet minimum liquidity requirements. The fund started up in November 2014. Its MER is a reasonable 0.44%, and the units currently yield a high 4.0%. The ETF focuses on leading large-cap global companies. Its top stocks are Toyota Motor Co. at 2.6% of assets; Nova Nordisk, 2.5%; Novartis AG, 2.5%; Roche Holdings, 2.5%; BHP Group, 2.5%; Nestle SA, 2.5%; Rio Tinto plc, 2.4%; Total Energies SA, 2.4%; LVMH Moet Hennessy Lois Vuitton SE, 2.4%; and Allianz AG, 2.4%. The breakdown by industry is diverse and as follows: Financials, 22.2%; Health Care, 14.8%; Consumer Discretionary,…