iShares S&P US Preferred. E.T.F. (PFF-Q)

(Past Top Pick on June 1, 2017, Up 8.5%) Has 10% of his portfolios in emerging markets. There's growth here, dominated by China. EM used to be resource-heavy, but now it's about Asia ex-Japan, headed by strong technology stocks. There's also the emerging middle class in places like India who will consume products. MER 0.26%.

He likes and own US preferred shares with yields that are close to US high-yields but without the credit risk. Be patient here and you will do well. You may enjoy a foreign exchange gain later this year because he expects pressure on the Canadian dollar later this year. Good yield.

(A Top Pick Jan 21/15. Up 3.76%.) Has done what he wanted it to do, which is basically nothing. The running yield on this is 5.5%-6%. Had owned this more for the decline in the Cdn$. This is very good quality. You are taking some currency risks as it is only priced in US$.

Considers this to be fixed income. It is investment grade preferreds. This is always an overlooked category. 5.5% yield and no withholding tax in an RRSP.

Whenever buying anything that is non-Canadian income, it is treated as regular income. For a straight Canadian ETF on banks, he would choose ZEB-T or through Covered Calls on ZWB-T.

He uses this in some of his clients’ registered accounts. The yield is about 6%, and doesn’t pay any kind of withholding tax. Also, if some of the air comes out of the Cdn$ you get a bit of a boost.

She believes we are in a rising rate environment, although she doesn’t think we are going to see sky high rates. From this point on, money is best spent in equities. She would prefer higher yielding Canadian equities.