ZSP:CA - Unhedged S&P 500 ETF Likely To Slide As CAD Appreciates

Nikola Lapenna195 FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe BMO S&P 500 Index ETF (ZSP:CA) offers low-cost, highly liquid U.S. large-cap exposure for Canadian investors, closely tracking the S&P 500.ZSP:CA is unhedged to CAD, exposing investors to U.S. dollar currency risk, which may drag performance if the Canadian dollar strengthens.The ETF's expense ratio is 0.09% with a beta of 0.97 and a Sharpe ratio of 1.51, indicating solid risk-adjusted returns.I rate ZSP:CA a Hold, expecting continued underperformance versus hedged alternatives as CAD appreciates due to oil strength and geopolitical shifts.

Getty Images What is ZSP:CA? The BMO S&P 500 Index ETF (ZSP:CA) is a passively managed exchange-traded fund (also known as an ETF) with a NAV of $20.6 billion CAD that invests in large-cap American listed stocks, with additional minor exposure (under 3%) inThis article was written byNikola Lapenna195 FollowersFollowWith over three years of finance and consulting experience, Nikola is laser focused on finding value in North American public equities and ETF's. His professional experience includes corporate credit risk analysis, consulting for government entities, and venture capital analysis in the med-tech space. More recently, Nikola has helped investors narrow down better options for ETF's - every asset manager seems to have similar offerings these days. Nikola is not a licensed financial advisor and nothing in his commentary here on Seeking Alpha should be regarded as advice. All of his opinions are his own, and not on behalf of any other entities.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.