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  5. ZMID: Could you please give your opinion on ZMID and RBF617 - which would you prefer over the next 5 years. [BMO S&P US Mid Cap Index ETF]
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Q: Could you please give your opinion on ZMID and RBF617 - which would you prefer over the next 5 years. Also, with the Canadian / US $ exchange rate currently being where it is, would this be a good time to use the hedged version of the above or do you prefer the unhedged versions?

Thank you so much!!
Asked by Barbara on December 10, 2024
5i Research Answer:

We like ZMID quite a lot, 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).  The average market cap of companies in IWM is $3.98B. Small and mid-cap stocks alike are poised for growth, in our view. ZMID is a bit more conservative than some peer funds so that may be a factor in one's decision. Looking at the economic outlook for Canada and our dollar (not great) we would continue to prefer unhedged products. RBF617 is similarly set up with mid caps, with performance close (3-year 11.5%). MER is 0.93%. We would note that RBF617 has a higher concentration of its individual securities positions. ZMID's biggest positions is 0.8% of the fund, RBF is 2.3%. We would consider this a close tie, but with ZMID having much lower fees we would side with it overall.