HAP Seasonal Rotation ETF (HAC.TO)

This has a 2% MER which is very high for an ETF. Also, he is not big on seasonality. To him, a reasonable cost for a broad product is one half of 1%. There are a lot of products that you can get for a quarter or even a 10th of a percent.

This is seasonal investing. There are a couple of issues on this. You must remember that most of the ETFs they have in this are Horizon ETFs, which are pretty low cost to begin with. Also, the fee they are charging which is roughly 80 basis points, basically covers the compounding as well. Also, remember that there is a performance premium on this of 20%. If they are doing very well, they are taking 20% off the top.

Seasonal rotational ETF. ‘Sell in May and go away’ rhymes. In actual fact the market high used to be in May, but is now more of a June peak. But we do know from history that from May to the fall, markets are flat. He thinks this ETF will beat the broader market during this time. But if the seasonals don’t play out that well you might not see it. He thinks, however, we will get a pullback. He thinks they will make tactical moves in the portfolio because of these moves that we should get better performance.

This is a basket of different investments and is actively managed. Other than a couple of quick movements up and down, it has been on a very steady upward track. Looks good and is stable.

Likes it. If you follow technical analysis, seasonal and fundamental, then this is a good one. It is a basket of ETFs.

He would have no problem with owning some of this.

(Top Pick Aug 8/11, Up 4.57%) Sold because of liquidity. He would love to be back in the name. He will look at it again in the future.