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Discussion Starter #1
I've only scratched the surface in a few threads where I mentioned this ETF.

From its little 5-year history, it seems like a solid ETF, but 5 years isn't that much. Yet, I like its main holdings. I feel like it could be way better, but "doing better" is what I'll try when stock-picking. If I want a no-brainer though, it seems like ZGQ is the one.

It's outperforming all of the other ETF I've seen, except for the ones focused on a sector like XIT or indexing IXIC like XQQ. XIT is all tech, so it's not a one-ETF-deal. XQQ is all-in on US and 50% tech, so I don't think it's a good one-ETF-deal either.

ZGQ though is world-diversified. 67% is US. 37% is tech. So it's less risky than XQQ, even though it's still high on US and tech, but it's an ETF so it'll adapt itself.

So far it's comparable to XMW, which is another good option, even more diversified than ZGQ.
 

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It would be a good pick if one was into factor investing. In particular, it seems to target profitability and quality, which are factors historically associated with higher returns. I believe the premium is 0.31% percent per month, slightly less than the value premium.

One could combine this with a value premium-targeting strategy and try to harvest both premia, without much overlap, since quality tilts more toward growth. VVL would be a way to access the value premium (globally in large cap stocks).

It is worth noting that Warren Buffett's investing success can for the most part be explained by factors such as quality, profitability, value, etc. We know him as a great stock-picker, but actually he (unknowingly) tapped into factors that we recognize as such today.
 

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Discussion Starter #3 (Edited)
Thanks for the information, I guess I'll read this : What is factor investing? | BlackRock

On the US side, MTUM seems to be the equivalent ETF (but ZGQ is - again - a better choice and more diversified).

Do you know why there's almost no volume on ETF like XMW and ZGQ while they provided strong returns with low volatility? I mean, if I wanted to sleep at night while having nice growth, I'd pick these. But the market's investors doesn't seem to agree.

XMW has been there for about 8 years and outperformed XSP, yet the daily volume on XMW is in the 10k while the volume on XSP is in the 500k. At least, on the US side, people are buying MTUM.
 

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It could be because factor investing is not a big deal in the Canada yet, the way it is in the US. Or maybe Canadian factor investors use predominantly US ETFs, since they are often cheaper with less tracking error.
 

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CI Wisdom Tree have some good quality factor ETFs too but you would have to get their Intl and US ETFs. They use quality and growth factors to select and rank and dividend totals to weight their portfolios vs market cap weight w limits on each sector for very balanced portfolios. (market weight ETFS can get heavy in tech and healthcare ) Mgmt fee .43%

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Discussion Starter #6 (Edited)
Another one is DXG.

Any opinion on that one?

They have such great holdings. They call it "Dynamic Active Global Dividend" but I see no dividend, only growth. They say it's companies expected to pay dividend, but in the last 3 years I prefer the growth of their holdings translated in the performance of that ETF. And this one has better volume.
 

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Another one is DXG.

Any opinion on that one?

They have such great holdings. They call it "Dynamic Active Global Dividend" but I see no dividend, only growth. They say it's companies expected to pay dividend, but in the last 3 years I prefer the growth of their holdings translated in the performance of that ETF. And this one has better volume.
Looks to be the best. Good choice. That is an A+ award winner in the 2019 Fund Data awards and likely the best of all. This awards list is a good reference for ETFs. BTW ZGQ is also an A+ award winner but the DXG sector weights look better.

It has great sector balance. Tech not overweight at 20%

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Dynamic have some other great award winning mutual funds that are now ETFs. I have DXF Financial Services and DXN Global Infrastructure.
 

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It could be because factor investing is not a big deal in the Canada yet, the way it is in the US. Or maybe Canadian factor investors use predominantly US ETFs, since they are often cheaper with less tracking error.
Thanks for the information, I guess I'll read this : What is factor investing? | BlackRock
Factor ETFs are a pretty new thing, so it would be good to see longer track records.

MTUM (momentum factor) really is interesting. The track record looks pretty good too, so I could believe that MTUM might be (a) achieving the momentum factor and (b) outperforming as a result of tapping into that factor. As an added benefit, the momentum factor seems to let it pick up on important current day themes such as the massive tech rally.

One question will be how MTUM responds when market themes shift, tech cools off, and a new group of stocks become the new momentum leaders. Only time will tell, but for now it looks pretty good:

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Discussion Starter #9 (Edited)
Dynamic have some other great award winning mutual funds that are now ETFs. I have DXF Financial Services and DXN Global Infrastructure.
Yes, seems like they have many options : Active ETF Products - Dynamic Funds

It has great sector balance. Tech not overweight at 20%

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I don't know if we should say "unfortunately", but I guess the dynamic management of the ETF has to pick up on tech to take advantage of its current situation.

Websites with data updated as of March 31 shows this, as you shown.

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But the two official websites for that ETF have data updated as of June 30. (They are not even exactly in sync, though)

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Those DXG weightings may be ok now. They are the sectors to be in for a recession recovery so they make sense from a sector tactical viewpoint. Could also be tech has been on such a run lately compared to the other sectors.
 
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