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Opinions Stan Wong
BMO Low Volatility Cdn Eqty ETFZLB.TODON'T BUYMar 09, 2017
Stock 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
A low volatility ETF. It is a formula that measures companies in Canada that is purchasing very low volatility lower beta type of names. He is not a fan of low volatility at this stage. Low volatility did very well up until last year, but since then it has underperformed the broader markets. It’s a basket of names right now that are in the real estate space along with some food names and utility names. These names are more expensive than the broader market, and probably going to underperform going forward.