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BMO Nasdaq 100 Equity Hedged To CAD Index ETF (ZQQ)
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RBC Life Science and Technology Fund Series F (RBF619)
Q: I hold ZQQ for tech exposure. It has grown 33.8% over the last year. I've noticed that RBF619, a Life Science and Technology fund, has grown 39.9% over the same period even with a much higher MER - 0.94% vs 0.39%. I assume this is due to the life science component in RBF619, including high performing stocks like Lilly. Would you switch ZQQ to RBF619 or are there other alternatives that provide a better tech return than ZQQ.
5i Research Answer:
We would not switch from RBF619 to ZQQ due to the fee. As mentioned, the MER is much higher and RBF619 has likely outperformed over the period mentioned due to exposure to Life Science companies like LLY and MRK. Other tech funds we would consider are VGT, XLK, and QQQ. All of these options offer better short and long term returns compared to ZQQ; this could be due to the fact that ZQQ is hedged. All of the Funds listed have had periods of outperformance over RBF619.