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  5. ZMID: Colin Cieszynski had this ETF as a top pick. [BMO S&P US Mid Cap Index ETF]
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Investment Q&A

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Q: Colin Cieszynski had this ETF as a top pick. My Question is is it a better stock to own compared to Russel's IWM.

Thank You
Earl
Asked by Earl on December 03, 2024
5i Research Answer:

IWM is a passive index fund focusing on the Russell 2000 small cap index. It has $83B in assets, fees of 0.19% and five year annualized 10.00%. One year performance is 32.38%. Three year 4.74%, We like ZMID quite a lot, but it is different, with a focus on mid-cap stocks. Assets are $462M, fees 0.17%, one year 34.66% and three year 11.69% (no five year). Note that when looking at performance, since ZMID is priced in C$ it gets the benefit of the decline in the C$. IWM does not, so in a fair comparison IWM's performance numbers would be higher than listed. The average market cap of companies in IWM is $3.98B, whereas with ZMID it is $15.5B. This highlights the main difference. We like both. Small and mid-cap stocks alike are poised for growth, in our view. But it is not a fair comparison as they are different. ZMID is likely a bit more conservative so that may be a factor in one's decision. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in IWM.