Daniel Straus

S&P 500 has been unstoppable for the past 2 years, up until the start of August when there was quite a bit of shakiness. Stemming from Japan and some unexpectedly bad US unemployment numbers.

From an ETF lens, interesting to see that there was more buying of S&P 500 ETFs than other global market indices, all while the actual stock markets were selling down. Shows, once again, that when the markets turn tough, people generally sell individual holdings and flock to ETFs that have been beaten down. When people find themselves in panic mode and selling individual positions, they still want some type of exposure and ETFs are ideal for that.

A lot of people are asking how to get exposure. People are sometimes worried about the prevalence and weight of China in those indices, which can be 50% or more of EM exposure. Some investors are trying to apply more judicious focus by, for example, looking at India or Asia-Pacific broadly. Even though the area has been volatile, the interest still remains.

Closed-end fund, not an ETF. Interest in closed-end funds has diminished in favour of ETFs. Can't be created or redeemed intra-day. Trades at discount to NAV, which can't be arbitraged away. Discount can always go lower.

Holds private holding companies, such as healthcare royalties. Additional risks including liquidity. Buying or selling a large position or quickly can really move the price around, which doesn't happen with an ETF. If you want Middlefield's active management, look instead at MINN.

Big, active position in NVDA, so performance was good. But because they're active, fees are also higher than a typical ETF. MER is somewhere in the 1% range, which doesn't sound like a headwind, but there are many that are much cheaper. If you're a cost-sensitive investor, he'd encourage you to investigate index tracking solutions.

High MER means it should be more of an exploratory position, be careful of position size.

Because they're active, fees are also higher than a typical ETF. MER is somewhere in the 1% range, which doesn't sound like a headwind, but there are many that are much cheaper. If you're a cost-sensitive investor, he'd encourage you to investigate index tracking solutions.

High MER means it should be more of an exploratory position, be careful of position size.

India has been an amazing growth story, attracting enormous interest. India ETFs in Canada and US tend to be more expensive. Legacy product from iShares, but expensive.

India has been an amazing growth story, attracting enormous interest. India ETFs in Canada and US tend to be more expensive. Uses MSCI for screens on ESG, which would screen out tobacco and firearms among others. Tries to achieve a balanced sector exposure. One of the better ways to get India from Canada. MER is only 67 bps, significantly cheaper than XID and others.

Popular, high distribution yield. The "W" in the ticker symbol stands for option overwriting, so a covered call ETF that writes call options on 50% of the portfolio. Gives you more yield in the present, but diminishes upside participation in a growth market.

ZEB is an equal weight of the 6 Canadian banks. Very simple, fees have been cut. Over the long haul, outperforms ZWB.

To choose, he asks clients about yield requirements and time horizon.

Equal weight of the 6 Canadian banks. Very simple, fees have been cut. Over the long haul, outperforms ZWB. ZWB gives you more yield in the present, but diminishes upside participation in a growth market.

To choose, he asks clients about yield requirements and time horizon.

A crowded space due to success of Cathie Wood's ARKK. Very active, so likely to be more expensive. Can have concentration risks that come from high-conviction stock selection strategy. A better way to get tech innovation would be through QQQ.

For a tech innovation theme. Well diversified, mega-cap or large-cap positions. Listed in the US, but also available in Canada from many different providers in many different flavours and hedged/unhedged.

Blend of all innovation sub-themes such as cybersecurity, cars, and battery technology. A more efficient way to get exposure to the area.

Important to note that it's not exactly the same as a high-interest savings account. No CDIC insurance, have to pay trading fees. Very stable price handle until there's a monthly distribution, based on Canadian overnight bank rates. Those distributions have come down as rates have started to decline.

At one point, superior to bonds. But now with yields coming down, money market funds such as ZMMK are very competitive. T-bill ETFs are also competitive.

Important to note that it's not exactly the same as a high-interest savings account. No CDIC insurance, have to pay trading fees. Very stable price handle until there's a monthly distribution, based on Canadian overnight bank rates. Those distributions have come down as rates have started to decline.

At one point, superior to bonds. But now with yields coming down, money market funds such as ZMMK are very competitive. T-bill ETFs are also competitive.

For covered call strategies, always consider the yield and the source of that yield. With this one, you'll forego some upside if utilities markets are strong, but you get more yield on an ongoing basis. Best for ongoing yield to pay your bills.

Compare it to a non-covered call alternative such as ZUT. Over the long term, outperforms the covered call on a total return basis. The better growth alternative.

Given the kind of market we're heading into, some strategists feel pretty good about utilities. Utilities are considered defensive, as people need to pay them whether the economy is good or bad; tend to have stable dividends.