ETF News

A key investment lesson from 2025 is that equity market leadership can change, as evidenced by the underperformance of U.S. equities and the outperformance of other equity markets, including Canada, Europe, and Japan. As the global economic landscape shifts, investors should ensure that their equity exposure isn’t confined to a single market – but is broadly diversified.

In the past, investors seeking comprehensive, global equity market exposure may have taken a piecemeal approach to achieve it, but today, turnkey solutions such as BMO’s All-Equity ETF (Ticker: ZEQT) offer that exposure through a single ticket.

Foundational parts, creating a comprehensive whole

The efficacy of ZEQT stems from its underlying holdings, proprietary index BMO ETFs that are strategically allocated using a rules-based methodology. As shown in the fund’s holding summary, ZEQT provides broad U.S. market capitalization exposure (Tickers: ZSP, ZMID, & ZSML), Canadian equity exposure (Ticker: ZCN), EAFE equity exposure (Ticker: ZEA), and Emerging Markets equity exposure (Ticker: ZEM).

Over the past three years, ZEQT has delivered meaningful returns while mitigating severe losses, highlighting the value of a diversified equity investing approach.

ZEQT’s Income Enhancement

For many investors, income generation is a table stakes requirement for their investments, as they want to benefit from their portfolio's growth and have it be a source of stable, recurring cash flow. Recognizing this investor sentiment, BMO recently launched Target Cash Flow units for several ETF offerings (i.e., mainly covered-call ETFs), including the BMO All-Equity ETF.

Speaking about these new series offerings, Sara Petrcich, Head of ETFs and Alternatives at BMO Global Asset Management, highlighted that the launch of new Target Cash Flow Units allows investors to tailor their cash flows to their needs. The target cash flow unit of the BMO All-Equity ETF (Ticker: ZEQT.T) provides investors with a target annualized distribution rate of 6%. It should be noted that the Target Cash Flow Units are subject to capital depletion risk. Target Cash Flow Units make monthly distributions of a fixed amount, which may comprise, in whole or in part, a return of capital ("ROC"). A ROC reduces the original investment amount and may result in the return to investors of the entire original investment.

Takeaway

In a market environment where equity market leadership is becoming increasingly dynamic, global diversification is a pathway to success. Through the BMO’s All-Equity ETF (Ticker: ZEQT), investors can gain broad equity market exposure through a single-ticket solution. Furthermore, with the launch of the fund’s target cash flow offering (i.e., ZEQT.T), investors can now receive a regular distribution payment that they can reinvest or allocate as they deem best.

This article was written on March 3rd, 2026. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.