Som Seif

India has announced about a month and a half ago they would pick up on the IMF gold sale. He is bullish on Gold long term, but there will be a lot of volatility. If China changes their building codes, it will impact lumber sector. It could be 50% of the Canadian lumber industry, but he would not invest in timber companies directly. He is positive on lumber if building codes change in China. Gold is a global currency and an economic hedge and risk of US economy and dollar.

Leveraged 2x daily return of natural gas commodity. It buys futures. At the end of each day, you re-balance the portfolio. There is a drag on it so when there is volatility; there is a drag on your returns if you hold long term. Use them for daily trading vehicles.

Fixed Income ETFs: Look at the duration of the exposure (the average term). If you have a longer duration and interest rates rise, you will have more sensitivity and your price will fall. You want lower duration if you believe interest rates are going up. If outside an RRSP, look at CAB-T because it has a tax advantaged income to it. If it is inside, look at XBB, XSB (short term), CLF-T (gov’t bonds), or CBO-T (corporate bonds).

Explain the movement patters of ETF’s: You have to look at what the ETF is investing in. For example in Commodities, there are really 3 baskets: Equity Commodities e.g. XGD-T (gold commodity stocks); Gold futures; and Physical Gold, stored in a vault (spot price). These gold ETFs will act very differently from one another. 1x ETFs mirror the index, but leveraged and commodity ETFs might be a little different.

Two classes of shares – common and advisor. The advisor fund pays the advisor a trailer fee and has a higher management fee.

Rebalancing portfolio mix: There was a strong run in equity markets in the last 9 months. It is critical that investors look that they are balanced and not overweight in any equity class. Prepare in case of a market downturn.

Dividend Based Equity. Likes to see an equity position as a dividend-paying stock, since there may be a re-trenchment over the next couple of months.

Gold: Will see $1300 soon. Gold is a very attractive asset. If we do see some re-trenchment and some US$ appreciation, all assets will come down, but gold will hold up much better. Loves the long-term fundamentals of gold.

Longer duration bonds, more sensitive to rising interest rates. If you are looking at 1-3 years to invest, then lighten up this one and go CLF-T. If you are going 10 years and looking for income, XGB is fine.

This is an inverse ETF and so there is erosion of capital when it re-calibrates.

It was a closed end fund that converted to an ETF. It is actively managed by Gartman. It is not performing.

Dividend Product with Russell Metals and banks.

ETF that invests across Canadian preferred shares. Preferreds are attractive because of the tax efficiency of the dividend. Last year, spreads widened considerably so there was a big dip earlier this year but have now come back very nicely. Long-term, preferreds are fantastic for dividends but will not give you huge returns. Doesn't expect they will give you more than 5%-7% long-term. Wouldn't use in a registered account.

Canadian balanced financial ETF with banks, bonds and preferreds. Very high income that comes from the underlying portfolio as well as return of capital.

iUnits S&P TSE 60 E.T.F. Very low cost. This will give you the broad benchmark index.