If you’re not sure which stock to put into your tax-free savings account (TFSA), one option you should consider is an exchange-traded fund (ETF) which gives you a lot of diverse exposure to many stocks. One fund that can be suitable for all long-term investors is the BMO Nasdaq 100 Equity Hedged to CAD Index ETF (TSX:ZQQ).
The fund tracks the 100 largest non-financial stocks on the Nasdaq, based on their market caps. It’s an ideal fund for long-term investors who want exposure to growth stocks, but who don’t want to worry about finding the best growth stocks themselves. By simply having exposure to the biggest and best stocks on the Nasdaq, the fund will have you covered.
Through the fund, you will have exposure to top stocks such as Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and many other big names. And should the make up of the top stocks in the Nasdaq change, the fund will update as well – there’s no need to worry about tracking individual growth stocks and having to make changes along the way.
The fund has a management expense ratio of 0.39%, which is modest compared to other ETFs. Year to date, the fund is up over 17% and in five years it has generated returns of more than 140%.
This ETF is one of the best ways for investors to grow their portfolios over time. By simply investing in the fund each month, you can grow your wealth and take advantage of the trajectory of some very strong stocks.
