Cole KachurBMO Tactical Dividend ETF FundZZZD.TOTOP PICKAug 23, 2019

Disclosure: He manages this ETF. A lot of the income in this comes from the trading aspect, which returns a capital gain distribution instead of a dividend. Now, he's raised the protection in this portfolio to shield it from market volatility in the future if it happens. A thinly traded ETF like this will have a wider bid-ask spread, so it's not ideal for trading. Don't be concerned about the volumes; ZZZD is backed by BMO which won't be going out of business.

Buys puts in the portfolio to provide some downside protection from volatility. He's involved in managing this fund.

*Note Larry Berman is manager of this fund. Is conflicted. 
Yield is around 6% which is healthy.
Outlook is positive for fund.
Focusing on emerging markets. 
Dividend paying stocks.
Safe blue chip stocks.

Over exposure to Europe.
Got value at current price.
Expect volatility with conflict in Europe.

Exposure to currency is mostly hedged for ZZZD. ZPAY is always in USD. ZWP is Canada relative to European currencies. The Canadian dollar selling off is a factor, but they are also doing well because they are doing what they are designed to do.

Hard to say which one would perform the best in a correction. ZZZD has a very defensive posture with half of the portfolio hedged to downside risk. ZWU and ZPAY are in ZZZD. Would look to be defensive in the next few months.

ZZZD gives you exposure to global dividend payers, whereas ZPAY is only US markets. ZZZD has ZPAY in it for the US exposure. ZPAY gives a yield around 6% whereas ZZZD is designed to give 4%.