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Opinions Richard Croft
BMO Low Volatility Cdn Eqty ETFZLB.TOCOMMENTDec 09, 2016
Richard CroftStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Portfolio of low-beta stocks. Consumer staples, some financials, utilities. MER is 39 bps, not exactly cheap but not overly expensive. For the investor looking for dividends plus a low ride in the equity market.
Consumer staples and utilities in Canada aren't cheap right now, as people flock to safety. At some point, investors will move away from the safe stuff and more into risk-on equities like technology, financials, and industrials. He's not in the recession camp right now, so he wouldn't want to hold a big chunk of consumer staples.
Get similar or better returns with less risk, beta, volatility. Well constructed product. Skews more to certain sectors like utilities and financial services, so you'll see underperformance. For 5-10-15-20 years, it's a thoughtful way to get returns from the market. Try XMV, which creates a portfolio of minimum volatility. You could use these 2 ETFs together.
David CockfieldDavid Cockfield
David Cockfield
Low volatility ETF’s?Thinks there is going to be some significant upside growth in the economy, and lower taxes. There are an awful lot of very good things that are going to benefit the US economy. In that light, low volatility ETF is a product that is less risky and tends to be less volatile. There is nothing wrong with this and is a place where you should have some of your money. However, if he were going to overweight something going into next year, he would want more of an alpha product, something that is going to be more aggressive.