BMO S&P/TSX Capped Composite Index ETF
ZCN.TO (TSX)
The BMO S&P/TSX Capped Composite Index ETF (ZCN) is an attractive option for beginner investors, offering a low management expense ratio of just 0.06%. With a solid dividend yield of 2.21% and impressive returns of 30.93% over the past year and 88.68% over the last five years, it provides broad access to the full Canadian market, including smaller-cap stocks. Analysts maintain a consensus rating of Moderate Buy, with a notable average price target of 47.84, reflecting positive growth prospects.
Pros:
- Low MER of 0.06%
- Provides access to the full Canadian market
Cons:
- May not be suitable for advanced investors
- Market volatility risk
The BMO S&P/TSX Capped Composite Index ETF (ZCN.TO) is well-suited for investors seeking broad exposure to the Canadian equity market, particularly those who are new to investing or prefer a low-cost option with a solid dividend yield. Its impressive historical returns and low management fees make it an appealing choice for long-term growth, though potential investors should consider their own financial goals and risk tolerance before investing.