BMO Low Volatility Cdn Eqty ETF (ZLB.TO)

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.

(A Top Pick March 4/16. Up 12.33%.) These are the kind of investments that really helped in 2015, when the market was really getting beaten up. Subsequently, he has moved a bit away and brought in iShares S&P/TSX Capped Composite (XIC-T). (See Top Picks.)

A low volatility product, and he would absolutely continue to hold this in spite of the market. If you are an aggressive investor, you probably should not have bought this in the 1^st place.

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.

(A Top Pick Sept 4/15. Up 10.81%.) He continues to like this, and is one of the heavier weighted securities in his equity portfolio. A good vehicle, particularly for smaller accounts. Has good diversification and good names.

A great product for people who are looking for a little lower volatility, but he prefers doing that himself. Sometimes people stick in lower volatility names that are supposed to be lower volatility, and they end up not being lower volatility. Feels there are better ways to get at lower volatility.

(A Top Pick June 26/15. Up 6.29%.) He still likes this. This is low volatility, and the way they work it is that they rejig them every 6 months.

(A Top Pick April 10/15. Down 0.30%.) This should perform well in down markets, and give you some upside in more aggressive markets. Has good diversification. Low beta meaning it is not as volatile as the rest of the market. About 30% financials.

(A Top Pick April 10/15. Down 2.97%.) Has outperformed the market fairly substantially. Reconstituted in January with a lot more emphasis on Canadian banks. Also, the yield has gone up to about 3%.

(A Top Pick Jan 22/15. Up 3.87%.) These are stocks with low betas, so are not as volatile as the rest of the market. He still likes it and is still adding to it for new clients.

(Top Pick Aug 14/15, Down 1.93%) The whole idea was to reduce volatility in your portfolio. It has basically been flat compared to the broader market. It has worked perfectly so far. When the volatility is over, you rotate into cyclical sectors.

Has $41,000. 3 ETF’s for growth and dividends to put into a TFSA account? This is a low volatility one that he would suggest. There is also a preferred that will give you a little bit of income. On the 3^rd one, he would suggest ZLU-T, which gives you low volatility. (See Top Picks.)

One of the cornerstones in a lot of his clients’ portfolios, particularly the smaller ones. This invests in low beta companies that are less volatile. It has done extremely well. It is light in the energy and commodity sectors. This will continue to work until we get back into more stable markets.

Everybody should have a low volatility ETF in their portfolio. You are not going to get the big gain that the market is going to get, but you are going to temper that back. If you are looking for a market correction, this is something you would put in your portfolio.

This is a low beta weighted portfolio of stocks. You want to seek ways to reduce your volatility in your portfolio. This holds telcos, utilities and some of the consumer staples stuff. A good way to stay invested, but to reduce your risk to the market gyrations.