Daniel Straus
Member since: May '16
Head of ETF Research & Strategy at
National Bank Financial

Latest Top Picks

(A Top Pick Nov 23/17, Up 5%) The largest Canadian ETF and perhaps the oldest in the world. He likes it for its institutional liquidity. It's a little different from XIC and others, because this holds only 60 stocks, which means large caps (heavy on the banks). For a longterm buy and hold, though, look for another ETF (XIC or ZCN), though this one charges only 17 basis points.
(A Top Pick Nov 23/17, Down 14%) Canadian oil has been beaten up since Nov. 2017. Oil investors are frustrated. ZEO is equal-weighted, so it's biased towards mid-caps.
(A Top Pick Nov 23/17, Up 11%) He uses this as a satellite position to put alongside a passive core, like the S&P 500 or Russell 3000. This starts with the RAFI 1000 universe then re-weights it based on their economic weight (cash flow, dividends, P/B). This has done well, not as well as the cap-weighted ETFs. It was a good way to gain US stock exposure and US currency exposure.
Investors should own Canada in their portfolios. He buys this for conservative, lower-risk clients given the low-volatilty in this ETF. This is the poster child of Low-Vol Anomaly: some low-vol stocks actually outperform than higher-vol. ZLB is overweight utilities and financials, so if there are rapid moves in interest rates, it could hurt those sectors.
US equities are essential, and this is a smart-beta ETF to put alongside an S&P 500 allocation. He likes this ETF for its dividends and high-quality stocks as well as its variable currency hedge.