Mike S. Newton, CIM FCSIBMO EQUAL WEIGHT INDUSTRIALS INDEX ETFZIN.TOCOMMENTDec 16, 2014
Canadian industrials. He would be interested in this space as long as you take a really good look at what the energy exposure is. Now that the Cdn$ is lower, there is a lot of tailwind with a lot of these names. You’ll find a lot of transportation names, such as West Jet. There is probably a lot of exposure on the outside of the oil patch, which would be interesting. He would be interested in owning this ETF.
He uses ETFs. Good one-stop way to get at the India 30, which has done well over the last couple of years. Over the next 30 years, India will be where China was. Very exciting area, investors should own.
Holds industrials so reasonable as a diversifier. Hold no more than 15 to 20 percent. If S&P 500 drops in significant way it will have a negative effect on all world markets.
Industrials (and financials) will be the winners in the coming reopening. Overall, he doesn't like sector ETFs, because they overcharge to manage just a small basket of stocks vs. an overall index at a low MER. Caveat: Don't own more than 5% of a sector, including industrials.
Tech, financials, industrials, and some of the value names are really moving. What's nice is that is has a bias toward some of the mid-cap names. Industrials are in a great sunshine period right now.
(A Top Pick Nov 20/17, Up 3%) One of the few Canadian things he likes. Industrials will still do well in Canada, despite our oil patch disaster. Still holds it.
He likes this, because you are dealing with Air Canada, Canadian Pacific, a bunch of airlines, Bombardier, etc., away from the normal financials. Has done very well when compared with the TSX.
An equal weight exposure to industrials in Canada. Airlines and rails are a big factor in Canada, neither of which are attractive at present. He sees a re-test of the lows for February before the down trend of the last couple of years is over with.
Canadian Industrial Sector. BMO has an ETF for this. You get rails also and they dominate in some indexes. If you are looking at a weighted index or an equally weighted indexed, it could be different. Canada does not have a lot of industrials. This is the one he recommends.
Industrials are very economy sensitive. If they spend the money growing the company instead of buying back their own shares they will do well. You might as well buy the basket instead of trying to pick them.
Canadian industrials. He would be interested in this space as long as you take a really good look at what the energy exposure is. Now that the Cdn$ is lower, there is a lot of tailwind with a lot of these names. You’ll find a lot of transportation names, such as West Jet. There is probably a lot of exposure on the outside of the oil patch, which would be interesting. He would be interested in owning this ETF.