Markets
All you need to know about accumulating “.L” ETFs as a Canadian investor
Similarly, some currency-hedged ETFs have their own suffixes. One example from the same provider is the BMO Long-Term U.S. Treasury Bond Index ETF (Hedged Units) (ZTL.F). It provides exposure to the same underlying bond portfolio as the unhedged version, but uses currency derivatives to mitigate fluctuations between the Canadian and U.S. dollars. There’s a third suffix worth knowing about, though. And once again, we can turn to BMO for an example: the BMO Ultra Short-Term Bond ETF (ZST.L). The “.L” suffix identifies accumulating units, which fundamentally change how an ETF handles the income generated by its underlying investments. Accumulating ETFs...
MoneySense6 min read
