BMO Long-Term US Treasury Bond Index ETF (ZTL.TO)

Stockchase Research Editor: Michael O'Reilly We reiterate ZTL as a low MER ETF as a defensive buy. It is made up of long term (20-30 yr) US Treasury bonds and was the only sector that rose in value during the most recent market retracement. We think of it as insurance -- as such we will not set a stop-loss nor upper price objective. It pays a yield to park your cash and we like that it is in Canadian funds -- as we expect weakness in the Canadian dollar during a sizable market pullback. Yield 2.60%

Stockchase Research Editor: Michael O'Reilly As we find it more challenging to identify TOP PICKs that still have good risk-adjusted upside potential, we often will suggest "hedges" that help protect against sizable downside broad market retracements. ZTL is a low MER ETF made up of long term (20-30 yr) US Treasury bonds. This was the only sector that rose in value during the market collapse back in March. It has recently hit 52 week lows, as the market has achieved all-time highs. Think of it as insurance -- as such we will not set a stop-loss nor upper price objective. It pays a yield to park your cash and we like that it is in Canadian funds -- as we expect weakness in the Canadian dollar during a sizable market pullback. Yield 2.73%