Opinions
David Cockfield
BMO Low Volatility Cdn Eqty ETF
ZLB-T
TOP PICK
Oct 27, 2017
Stock price when the opinion was issued
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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.
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.
There are people concerned about Trump, NAFTA, real estate, etc. and have withdrawn form the market and are sitting on cash. He has come up with suggestions that are relatively safe and represent a broad diversification in relatively safe areas. This one is a low volatility Cdn equity ETF. The stocks in this are relatively secure and not very volatile. If the market sells off, this will probably outperform the market.