BMO Low Volatility Cdn Eqty ETF (ZLB.TO)

One worry he had with low volatility ETFs, certainly through the summer of last year, was that it was one of the biggest inflows from the ETF industry from both Canada and the US. You get a little bit worried that there is too much money chasing something. This is a strategy that is really good for very, very long periods of time. A well-established idea. There have been studies showing that low volatility stocks can actually outperform high volatility ones. Where the math works is the idea of the compounding and the ability to have shallow declines in the market. Secondly, the anomaly works by the rebalancing of the 40 lowest names and reconstituting them 2 times a year. Great ETF to own in a TFSA or a small LIRA etc.

(Top Pick Dec 6/12, Up 24.15%) done very, very well with a beta below 1. Low volatility.

(His 3 Picks are all ETFs and a good way for the average investor to get into some part of the market with a fair amount of safety and diversification.) This one has performed quite well. This is diversification at a reasonable price. Not as volatile as the market.

[Caller asked about playing food.] This is not really a play on food, but on low beta on the TSX. This is the best way to play food.

Picked for the small investor. Broad range of stocks that are picked because they are not as volatile. First 6 months of this year it outperformed the TSX. Low dividend but performed well. They rebalance.

Has found that ETFs work very well, particularly in smaller portfolios. There has been a significant selloff recently which gives you an opportunity to get into these instruments. Management costs on these are relatively low. You get excellent diversification.

(Top Pick Feb 15/13, Up 2.53%) It’s low beta. One of his larger positions.

Has outperformed the TSX yet is low volatility. Is a position that is not affected to the downside as much in a pullback this spring.

Low beta so you are not going to have just utilities but also any kind of a stock that has a low beta. You are getting returns that hopefully will be reasonably close to what the benchmark does. Doesn’t use this one a lot but likes to recommend things that he is hearing that people want.

Likes this one. Quite possibly the market leader in this space.