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ZMI-U

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1d
1w
1m

Analysis and statistics

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About

ZMI-U.TO represents the Horizons US Dollar Currency ETF. This ETF seeks to replicate, to the extent possible, the performance of the Solactive US Dollar CAD Forward Rate Index, net of expenses. The index measures the implied yield differential between the U.S. dollar and the Canadian dollar by tracking a rolling position in one-month foreign exchange forward contracts. Investors may use ZMI-U.TO to gain exposure to the U.S. dollar relative to the Canadian dollar, potentially benefiting from a strengthening U.S. dollar or rising interest rate differentials between the two currencies. It's important to note that the "U" in the symbol indicates the ETF is denominated in Canadian dollars, but it provides exposure to the US dollar currency.
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Factors

Liquidity of Underlying Assets: Difficulty in buying/selling underlying securities impacts ZMI-U.TO price.

Demand and Supply: Higher demand drives the price up; increased supply pushes it down.

Overall Market Conditions: Broad market downturns or rallies influence ZMI-U.TO performance.

Foreign Exchange Rates: As a CAD hedged ETF, CAD/USD fluctuations impact returns.

Management Fees and Expenses: These reduce the net asset value, affecting ZMI-U.TO's price.

Tracking Error: Deviation from the target index affects investor confidence and pricing.

Interest Rates: Rising rates can make fixed income alternatives more attractive.

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