Low-cost ETF for exposure to the top Canadian companies

Article Excerpt

BMO S&P/TSX CAPPED COMPOSITE INDEX ETF $33.69 (Toronto symbol ZCN; TSINetwork ETF Rating: Conservative; Market cap: $9.8 billion) tracks the S&P/TSX Capped Composite Index. The index includes over 200 top-ranked Canadian stocks that represent more than 90% of the Canadian equity market. Individual stock weights are capped at 10% of the index’s market capitalization and are rebalanced quarterly. Financial companies comprise 32% of its assets, while Energy (16%), Basic Materials (14%), Industrials (13%), and Technology (9%), are other key segments. The ETF currently holds a portfolio of 219 stocks; the top 10 make up 37% of its assets. Top holdings include Royal Bank of Canada (6.7%), Shopify (5.4%), TD Bank (4.2%), Enbridge (3.7%), Brookfield Corporation (3.3%), Bank of Montreal (3.0%), Canadian Pacific Kansas City (2.9%), Constellation Software (2.7%), Canadian National Resources (2.4%), and Agnico-Eagle Mines (2.4%). The ETF started up in May 2009 and charges a very low MER of 0.06%. It has a large asset base and offers reasonable liquidity with an average of…