Daniel Straus
Member since: May '16
Head of ETF Research & Strategy at
National Bank Financial
National Bank Financial
216 Opinions
Latest Top Picks
(A Top Pick Mar 12/19, Up 15%) It has been a good performer since its inception. It moved out of Canadian energy stocks at a pivotal time based on its rules based methodology. It looks for the lowest beta Canadian stocks. This is an actively managed fund he feels as it has a human element to it as well. A conservative investor would like this one and could perhaps match it with a lower cost passively managed fund.
(A Top Pick Mar 12/19, Up 18%) A US market ETF that hedges currency based on various rules. It takes the guess work out of currency.
(A Top Pick Mar 12/19, Up 6%) A fairly actively managed bond ETF. Its cost is only slightly higher than a passive ETF. It tracked the Canadian bond index quite well he thought.
Value might make a play again on 2020 and Canada could be a great spot. MER 0.68%. Top Holdings include Kinross Gold, Martinrea, and Canadian Natural. Yield 2.05%
More of higher risk, higher return holding. It has a lot of weight in China (37% of the portfolio). Global growth will start to participate in the growth seen in industrial markets recently, he thinks. MER 0.24%. Yield 2.65%
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COMMENT
COMMENT
January 22, 2020
ETF flows 2019 was a record year of inflows to ETFs -- over $28 billion in Canada and now over $200 billion in total. The US has hundreds of billions of dollars each year. ETF inflows now exceed mutual fund inflows. A movement back into bonds by investors signals a risk adverse behavior following the trade related uncertainty. This caused a lot of inflows into low volatility ETFs. As 2019 came to a close higher market returns moved flows back into risk on investments. 2019 was a "Goldilocks" years as virtually all markets were up globally last year.
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ETF flows 2019 was a record year of inflows to ETFs -- over $28 billion in Canada and now over $200 billion in total. The US has hundreds of billions of dollars each year. ETF inflows now exceed mutual fund inflows. A movement back into bonds by investors signals a risk adverse behavior following the trade related uncertainty. This caused a lot of inflows into low volatility ETFs. As 2019 came to a close higher market returns moved flows back into risk on investments. 2019 was a "Goldilocks" years as virtually all markets were up globally last year.
COMMENT
COMMENT
January 22, 2020
S&P Inverse ETF? Anything that is inverse or leveraged requires caution and he advises only highly sophisticated traders use these. HIU-T is an inverse S&P ETF in Canada. Volatility makes them erode over time, so be careful.
Show full opinionHide full opinionS&P Inverse ETF? Anything that is inverse or leveraged requires caution and he advises only highly sophisticated traders use these. HIU-T is an inverse S&P ETF in Canada. Volatility makes them erode over time, so be careful.
COMMENT
COMMENT
January 22, 2020
S&P Inverse ETF? Anything that is inverse or leveraged requires caution and he advises only highly sophisticated traders use these. HIU-T is an inverse S&P ETF in Canada. Volatility makes them erode over time, so be careful.
Show full opinionHide full opinionS&P Inverse ETF? Anything that is inverse or leveraged requires caution and he advises only highly sophisticated traders use these. HIU-T is an inverse S&P ETF in Canada. Volatility makes them erode over time, so be careful.
E.T.F.'s
HOLD
HOLD
January 22, 2020
A core iShares offering. It has only a 0.1% MER. It holds Canadian and foreign Canadian-denominated bonds (Maple bonds). It offers some diversification, but it will not shoot the lights out. It is short duration and high quality holdings and acts as a good defensive holding. This is fine for most Canadian investors.
Show full opinionHide full opinionA core iShares offering. It has only a 0.1% MER. It holds Canadian and foreign Canadian-denominated bonds (Maple bonds). It offers some diversification, but it will not shoot the lights out. It is short duration and high quality holdings and acts as a good defensive holding. This is fine for most Canadian investors.
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
ZWP vs ZWE? Both of these give virtually the same exposure into European dividend payers with a covered call writing strategy overlayed. The SWE is currency hedged to the CAD dollar. You would want the currency hedged product if you think the foreign currency was going to weaken compared to the CAD. Today, with the Bank of Canada holding rates steady in Canada, he believes traders will see weakness for the CAD and so you may want to be un-hedged on the currency side (i.e. hold ZWP instead). He cautions that a covered call will pay a higher dividend (as it collects premiums by selling call options), but it tends to limit the upside. Yield 7%
Show full opinionHide full opinionZWP vs ZWE? Both of these give virtually the same exposure into European dividend payers with a covered call writing strategy overlayed. The SWE is currency hedged to the CAD dollar. You would want the currency hedged product if you think the foreign currency was going to weaken compared to the CAD. Today, with the Bank of Canada holding rates steady in Canada, he believes traders will see weakness for the CAD and so you may want to be un-hedged on the currency side (i.e. hold ZWP instead). He cautions that a covered call will pay a higher dividend (as it collects premiums by selling call options), but it tends to limit the upside. Yield 7%
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
ZWP vs ZWE? Both of these give virtually the same exposure into European dividend payers with a covered call writing strategy overlayed. The SWE is currency hedged to the CAD dollar. You would want the currency hedged product if you think the foreign currency was going to weaken compared to the CAD. Today, with the Bank of Canada holding rates steady in Canada, he believes traders will see weakness for the CAD and so you may want to be un-hedged on the currency side (i.e. hold ZWP instead). He cautions that a covered call will pay a higher dividend (as it collects premiums by selling call options), but it tends to limit the upside. Yield 7%
Show full opinionHide full opinionZWP vs ZWE? Both of these give virtually the same exposure into European dividend payers with a covered call writing strategy overlayed. The SWE is currency hedged to the CAD dollar. You would want the currency hedged product if you think the foreign currency was going to weaken compared to the CAD. Today, with the Bank of Canada holding rates steady in Canada, he believes traders will see weakness for the CAD and so you may want to be un-hedged on the currency side (i.e. hold ZWP instead). He cautions that a covered call will pay a higher dividend (as it collects premiums by selling call options), but it tends to limit the upside. Yield 7%
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
These both have very wild swings and should be considered as speculative -- not to be held as part of a nest egg. SEED is an actively traded portfolio, whereas HMJR is a passive index. There can be a strong case for active management in this case as it can time entry and exit and hold cash when appropriate.
These both have very wild swings and should be considered as speculative -- not to be held as part of a nest egg. SEED is an actively traded portfolio, whereas HMJR is a passive index. There can be a strong case for active management in this case as it can time entry and exit and hold cash when appropriate.
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
These both have very wild swings and should be considered as speculative -- not to be held as part of a nest egg. SEED is an actively traded portfolio, whereas HMJR is a passive index. There can be a strong case for active management in this case as it can time entry and exit and hold cash when appropriate.
These both have very wild swings and should be considered as speculative -- not to be held as part of a nest egg. SEED is an actively traded portfolio, whereas HMJR is a passive index. There can be a strong case for active management in this case as it can time entry and exit and hold cash when appropriate.
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
ZLU is a top choice ETF of the US market -- he believes it is not currency hedged to the CAD dollar. He likes the lower volatility holdings. Good for conservative investors. He also likes the USMV ETF.
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
ZLU is a top choice ETF of the US market -- he believes it is not currency hedged to the CAD dollar. He likes the lower volatility holdings. Good for conservative investors. He also likes the USMV ETF.
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
This ETF holds Canadian Real Return Bonds with a formula tied to inflation rates. Its price will reflect the view on inflation. The bonds have long terms to maturity (about 15 years), which gives it higher interest rate risk. A one percent interest rate increase can change the value by 15%. This leads to it being more volatile. A good hedge to rising inflation though.
Show full opinionHide full opinionThis ETF holds Canadian Real Return Bonds with a formula tied to inflation rates. Its price will reflect the view on inflation. The bonds have long terms to maturity (about 15 years), which gives it higher interest rate risk. A one percent interest rate increase can change the value by 15%. This leads to it being more volatile. A good hedge to rising inflation though.
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
A defensive ETF? If your concern is safety you may want to look elsewhere. This ETF holds investment grade Canadian corporate bonds. It is actively managed, which makes sense for this unique space. It has a lower MER as well (0.4%). Be careful looking at yield. It the yield is listed higher than the bond portfolios Yield to Maturity, it will likely decline in share price over time. This makes it more challenging to understand total valuation. Yield 3.6%
Show full opinionHide full opinionA defensive ETF? If your concern is safety you may want to look elsewhere. This ETF holds investment grade Canadian corporate bonds. It is actively managed, which makes sense for this unique space. It has a lower MER as well (0.4%). Be careful looking at yield. It the yield is listed higher than the bond portfolios Yield to Maturity, it will likely decline in share price over time. This makes it more challenging to understand total valuation. Yield 3.6%
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
January 22, 2020
(A Top Pick Mar 12/19, Up 15%) It has been a good performer since its inception. It moved out of Canadian energy stocks at a pivotal time based on its rules based methodology. It looks for the lowest beta Canadian stocks. This is an actively managed fund he feels as it has a human element to it as well. A conservative investor would like this one and could perhaps match it with a lower cost passively managed fund.
Show full opinionHide full opinion(A Top Pick Mar 12/19, Up 15%) It has been a good performer since its inception. It moved out of Canadian energy stocks at a pivotal time based on its rules based methodology. It looks for the lowest beta Canadian stocks. This is an actively managed fund he feels as it has a human element to it as well. A conservative investor would like this one and could perhaps match it with a lower cost passively managed fund.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
January 22, 2020
(A Top Pick Mar 12/19, Up 18%) A US market ETF that hedges currency based on various rules. It takes the guess work out of currency.
Show full opinionHide full opinion(A Top Pick Mar 12/19, Up 18%) A US market ETF that hedges currency based on various rules. It takes the guess work out of currency.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
January 22, 2020
(A Top Pick Mar 12/19, Up 6%) A fairly actively managed bond ETF. Its cost is only slightly higher than a passive ETF. It tracked the Canadian bond index quite well he thought.
Show full opinionHide full opinion(A Top Pick Mar 12/19, Up 6%) A fairly actively managed bond ETF. Its cost is only slightly higher than a passive ETF. It tracked the Canadian bond index quite well he thought.
E.T.F.'s
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