Christine HughesiShares S&P US Preferred. E.T.F.PFFCOMMENTJun 17, 2014

(Past Top Pick on June 1, 2017, Up 8.5%) Has 10% of his portfolios in emerging markets. There's growth here, dominated by China. EM used to be resource-heavy, but now it's about Asia ex-Japan, headed by strong technology stocks. There's also the emerging middle class in places like India who will consume products. MER 0.26%.

He likes and own US preferred shares with yields that are close to US high-yields but without the credit risk. Be patient here and you will do well. You may enjoy a foreign exchange gain later this year because he expects pressure on the Canadian dollar later this year. Good yield.

(A Top Pick Jan 21/15. Up 3.76%.) Has done what he wanted it to do, which is basically nothing. The running yield on this is 5.5%-6%. Had owned this more for the decline in the Cdn$. This is very good quality. You are taking some currency risks as it is only priced in US$.

Considers this to be fixed income. It is investment grade preferreds. This is always an overlooked category. 5.5% yield and no withholding tax in an RRSP.

Whenever buying anything that is non-Canadian income, it is treated as regular income. For a straight Canadian ETF on banks, he would choose ZEB-T or through Covered Calls on ZWB-T.

He uses this in some of his clients’ registered accounts. The yield is about 6%, and doesn’t pay any kind of withholding tax. Also, if some of the air comes out of the Cdn$ you get a bit of a boost.