Daniel Straus
Member since: May '16
Head of ETF Research & Strategy at
National Bank Financial
National Bank Financial
Reveal Expert Rating
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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Opinion
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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
COMMENT
COMMENT
January 22, 2020
Taxable in CDN registered acct? He recommends seeking tax advise, but high distribution bonds and international securities (US and other) in a registered fund. It gets complicated that some have US holding taxes, that may not be recoverable. IDHD can be purchased without withholding taxes. It is pretty favorable though. There may be some European withholding tax that is not recoverable. This ETF is slightly lower volatility than other international ETFs.
Show full opinionHide full opinionTaxable in CDN registered acct? He recommends seeking tax advise, but high distribution bonds and international securities (US and other) in a registered fund. It gets complicated that some have US holding taxes, that may not be recoverable. IDHD can be purchased without withholding taxes. It is pretty favorable though. There may be some European withholding tax that is not recoverable. This ETF is slightly lower volatility than other international ETFs.
E.T.F.'s
DON'T BUY
DON'T BUY
January 22, 2020
These thematic ETFs tend to be much higher in volatility. He defers to more diversified passively managed funds to gain exposure into a broader range of markets. He would stay away.
Show full opinionHide full opinionThese thematic ETFs tend to be much higher in volatility. He defers to more diversified passively managed funds to gain exposure into a broader range of markets. He would stay away.
E.T.F.'s
SELL
SELL
January 22, 2020
Time to cut losses? He has had a lot of questions on this one. Investors tend to run to banks when interest rates are thought to be rising as bank profitability tends to rise when rate spreads expands. US banks did not do well last year for various reasons. With the investment cycle going on he believes interest rates are likely to remain where they are, so the outlook for US banks is not likely to change. He might suggest selling and moving into a broader market based ETF.
Show full opinionHide full opinionTime to cut losses? He has had a lot of questions on this one. Investors tend to run to banks when interest rates are thought to be rising as bank profitability tends to rise when rate spreads expands. US banks did not do well last year for various reasons. With the investment cycle going on he believes interest rates are likely to remain where they are, so the outlook for US banks is not likely to change. He might suggest selling and moving into a broader market based ETF.
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.
VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.
E.T.F.'s
COMMENT
COMMENT
January 22, 2020
VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.
VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.
COMMENT
COMMENT
January 22, 2020
VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.
VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.
E.T.F.'s
TOP PICK
TOP PICK
January 22, 2020
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%
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%
E.T.F.'s
TOP PICK
TOP PICK
January 22, 2020
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%
Show full opinionHide full opinionMore 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%
E.T.F.'s
TOP PICK
TOP PICK
January 22, 2020
One of the largest and cheapest bond ETFs in Canada. The duration is just over 2 years. He thinks the short term duration are much lower risk.
MER 0.17% Yield 2.38%
Show full opinionHide full opinionOne of the largest and cheapest bond ETFs in Canada. The duration is just over 2 years. He thinks the short term duration are much lower risk.
MER 0.17% Yield 2.38%
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
Market Outlook. Has seen twice as many inflows in fixed incomes compared to equities year to date. Bear sentiment in the market, particularly at the start of the year. Believes there may be reason to temper some of that pessimism going forward. Has seen outflows from emerging markets and international equities due to trade tensions, no-deal Brexit, tensions between Japan and South Korean, and political tension in Italy.
Show full opinionHide full opinionMarket Outlook. Has seen twice as many inflows in fixed incomes compared to equities year to date. Bear sentiment in the market, particularly at the start of the year. Believes there may be reason to temper some of that pessimism going forward. Has seen outflows from emerging markets and international equities due to trade tensions, no-deal Brexit, tensions between Japan and South Korean, and political tension in Italy.
COMMENT
COMMENT
August 20, 2019
Banks. Up until recently the consensus was we were entering a slow steady path of rising interests rates. One of the classic way of playing that was with the banks. With the sudden reversal of feds signal and rate cut in July a lot of the profits have been giving back. The herd is moving where the consensus dictates.
Show full opinionHide full opinionBanks. Up until recently the consensus was we were entering a slow steady path of rising interests rates. One of the classic way of playing that was with the banks. With the sudden reversal of feds signal and rate cut in July a lot of the profits have been giving back. The herd is moving where the consensus dictates.
COMMENT
COMMENT
August 20, 2019
Cannabis. Canada is an innovator in this space in the sense that the first marjiuana industry ETFs were available in Canada. HMMJ from Verizon being a prime example. We are seeing the U.S. catching up. The space is so volatile with so many ways to play it investors should take an active solutions if they want to profit from this on the long term.
Show full opinionHide full opinionCannabis. Canada is an innovator in this space in the sense that the first marjiuana industry ETFs were available in Canada. HMMJ from Verizon being a prime example. We are seeing the U.S. catching up. The space is so volatile with so many ways to play it investors should take an active solutions if they want to profit from this on the long term.
COMMENT
COMMENT
August 20, 2019
Actrively managed small cap ETF? There are small caps ETFs, there are actively managed ETFs, but it's hard to find both. Dynamic iShares Active Canadian ETFs is an active one but it has some large caps in there as well. There are some small caps ETFs, Manulife has some for the U.S, kinda active in a sense, pretty close to the index. Perhaps you shoud look outside of ETFs for this.
Show full opinionHide full opinionActrively managed small cap ETF? There are small caps ETFs, there are actively managed ETFs, but it's hard to find both. Dynamic iShares Active Canadian ETFs is an active one but it has some large caps in there as well. There are some small caps ETFs, Manulife has some for the U.S, kinda active in a sense, pretty close to the index. Perhaps you shoud look outside of ETFs for this.
COMMENT
COMMENT
August 20, 2019
ETF with small to mid-cap oil and gas? Some of the older ETFs in Canada play this directly, BMO has ZJN and ZJO, those are perfectly good ETFs, they charge around 0.60 MER, a bit higher of what we see from current generation products. Very volatile. Thinks there is a reason to be optimisic regarding oil and gas. Would be cautious, very risky, particularly in the junior space.
Show full opinionHide full opinionETF with small to mid-cap oil and gas? Some of the older ETFs in Canada play this directly, BMO has ZJN and ZJO, those are perfectly good ETFs, they charge around 0.60 MER, a bit higher of what we see from current generation products. Very volatile. Thinks there is a reason to be optimisic regarding oil and gas. Would be cautious, very risky, particularly in the junior space.
COMMENT
COMMENT
August 20, 2019
Tax efficiency in non-registered accounts. There was some comments in the recent budget about the way income is tagged to redeemers. A bit technical but it did seem to affects a whole bunch of mutual funds and ETFs. Feels there isn't the perfect amount of clarity from regulators. We're in a little bit of a position of ignorance regarding the tax efficiency of these products. As far as exposure goes it's a very good product, if you really want tax efficiency he would compare similar products like VBAL or XBAL and pick the one with the lowest yield.
Show full opinionHide full opinionTax efficiency in non-registered accounts. There was some comments in the recent budget about the way income is tagged to redeemers. A bit technical but it did seem to affects a whole bunch of mutual funds and ETFs. Feels there isn't the perfect amount of clarity from regulators. We're in a little bit of a position of ignorance regarding the tax efficiency of these products. As far as exposure goes it's a very good product, if you really want tax efficiency he would compare similar products like VBAL or XBAL and pick the one with the lowest yield.
COMMENT
COMMENT
August 20, 2019
Within an RRSP. One of his favorite dividend ETF in Canada. He warns that he is not a tax expert, but generally in an RRSP you would not want Canadian eligible dividends like this one. You'd rather put bonds ETFs or foreign equity ETFs.
Show full opinionHide full opinionWithin an RRSP. One of his favorite dividend ETF in Canada. He warns that he is not a tax expert, but generally in an RRSP you would not want Canadian eligible dividends like this one. You'd rather put bonds ETFs or foreign equity ETFs.
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
Global REIT ETF. Been around for over 10 years. He wouldn't think of this ETF as a core holding. If you are a believer in a need for alternatives in your portfolio, a little uncorrelated from global equity markets or bond markets, then this one fits in. Overweight the U.S.. MER is on the higher side at 0.72. If you have an MSCI World or Global Equity ETF in your portfolio you probably already hold many of these securities. If you hold just a bit of Canada, then maybe a small weight in CGR can be a diversifier.
Show full opinionHide full opinionGlobal REIT ETF. Been around for over 10 years. He wouldn't think of this ETF as a core holding. If you are a believer in a need for alternatives in your portfolio, a little uncorrelated from global equity markets or bond markets, then this one fits in. Overweight the U.S.. MER is on the higher side at 0.72. If you have an MSCI World or Global Equity ETF in your portfolio you probably already hold many of these securities. If you hold just a bit of Canada, then maybe a small weight in CGR can be a diversifier.
E.T.F.'s
SELL
SELL
August 20, 2019
Gold makes sense as a small part of many investors portfolios as an alternative asset class. In the recent market panic gold rallied quite a bit. Thinks perhaps it rallied too much. A small position in gold or other precious metals no more than single-digit % could make sense purely as a diversifier. As a long term buy and hold he would suggest to trim. If you look at the producers he would look at them just like any other equities, look at their book, the management, debt to equity ratio, geographic risks, etc.
Show full opinionHide full opinionGold makes sense as a small part of many investors portfolios as an alternative asset class. In the recent market panic gold rallied quite a bit. Thinks perhaps it rallied too much. A small position in gold or other precious metals no more than single-digit % could make sense purely as a diversifier. As a long term buy and hold he would suggest to trim. If you look at the producers he would look at them just like any other equities, look at their book, the management, debt to equity ratio, geographic risks, etc.
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
Been around for a long time. Very popular on its initial launch. Diversified financials. If you are very yield sensitive you should perhaps consider keeping it. If you are thinking of it as a real kinda cushion for your savings he would recommend a more diversified portfolio beside just financials. 53% bank allocation.
Show full opinionHide full opinionBeen around for a long time. Very popular on its initial launch. Diversified financials. If you are very yield sensitive you should perhaps consider keeping it. If you are thinking of it as a real kinda cushion for your savings he would recommend a more diversified portfolio beside just financials. 53% bank allocation.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
August 20, 2019
(A Top Pick Oct 18/18, Up 9%) At the time they were feeling pretty good about Canada and they still are. Total return swap. Derivative contracts. The cheapest ETF in Canada at only 0.03% MER. Because of the uncertainty around its derivative structure its hard to say if its tax efficiency will cary forward in exactly the same way.
Show full opinionHide full opinion(A Top Pick Oct 18/18, Up 9%) At the time they were feeling pretty good about Canada and they still are. Total return swap. Derivative contracts. The cheapest ETF in Canada at only 0.03% MER. Because of the uncertainty around its derivative structure its hard to say if its tax efficiency will cary forward in exactly the same way.
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
MER factor in the decision of an ETF? It's a very important factor but not the most important. Bid-asks spreads, fund internal trading expenses ratios, which are not necessarily referred to as part of the MER, but really the most important part is the underlying exposure.
Show full opinionHide full opinionMER factor in the decision of an ETF? It's a very important factor but not the most important. Bid-asks spreads, fund internal trading expenses ratios, which are not necessarily referred to as part of the MER, but really the most important part is the underlying exposure.
PAST TOP PICK
PAST TOP PICK
August 20, 2019
(A Top Pick Oct 18/18, Down 9%) A very long-term hold. Still believes the value factor will reward long term investors. In the current environment it make sense to really consider pure passive index as your primary equity exposure instead.
Show full opinionHide full opinion(A Top Pick Oct 18/18, Down 9%) A very long-term hold. Still believes the value factor will reward long term investors. In the current environment it make sense to really consider pure passive index as your primary equity exposure instead.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
August 20, 2019
(A Top Pick Oct 18/18, Up 11%) Multi-asset portfolio ETF. A testimate to the confounding power of the low-volatility anomaly. Low vols stocks tend to do very well. If you are thinking of a passive ETF like VBAL or XBAL, this ETF gives the same sort of exposure but restricts the equities securities to low volatility for Canada, US, international and merging markets.
Show full opinionHide full opinion(A Top Pick Oct 18/18, Up 11%) Multi-asset portfolio ETF. A testimate to the confounding power of the low-volatility anomaly. Low vols stocks tend to do very well. If you are thinking of a passive ETF like VBAL or XBAL, this ETF gives the same sort of exposure but restricts the equities securities to low volatility for Canada, US, international and merging markets.
E.T.F.'s
BUY
BUY
August 20, 2019
Long-term TFSA hold? Yet another multi-asset ETF. Balanced portfolio 60/40 made of other low costs Vanguard funds. Really great for what it is. You can set it and forget it. Good product if you are a long term investor and want one single holding in your TFSA. You can go with VGRO if you want more growth or VCNS for conservative. There are similar products from iShares, BMO and Horizons. Can't comment for the tax-efficiency he would recommend going to a tax expert.
Show full opinionHide full opinionLong-term TFSA hold? Yet another multi-asset ETF. Balanced portfolio 60/40 made of other low costs Vanguard funds. Really great for what it is. You can set it and forget it. Good product if you are a long term investor and want one single holding in your TFSA. You can go with VGRO if you want more growth or VCNS for conservative. There are similar products from iShares, BMO and Horizons. Can't comment for the tax-efficiency he would recommend going to a tax expert.
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
Canadian ETF for gold? If you want gold bullion there is CGL which is currency-hedged, there is also a slighly cheaper product from Purpose, KILO is the ticker. Thinks if you think to allocate to gold it does make sense to currency-hedge due to falling rates in the U.S. If you want gold miners there is GOGO that has a bit of quant methodology.
Show full opinionHide full opinionCanadian ETF for gold? If you want gold bullion there is CGL which is currency-hedged, there is also a slighly cheaper product from Purpose, KILO is the ticker. Thinks if you think to allocate to gold it does make sense to currency-hedge due to falling rates in the U.S. If you want gold miners there is GOGO that has a bit of quant methodology.
COMMENT
COMMENT
August 20, 2019
Historical price of platinum vs gold? Can't comment on industrial usage of platinum vs palladium. Unlike gold, platinum and palladium do have industrial uses, so as gold, but gold primarily has a consumer use and a psychological use as a saftey asset. He would be very careful to read into the historical ratios and betting on reversion trade and the behavior of platinum relative to gold and so on.
Show full opinionHide full opinionHistorical price of platinum vs gold? Can't comment on industrial usage of platinum vs palladium. Unlike gold, platinum and palladium do have industrial uses, so as gold, but gold primarily has a consumer use and a psychological use as a saftey asset. He would be very careful to read into the historical ratios and betting on reversion trade and the behavior of platinum relative to gold and so on.
E.T.F.'s
DON'T BUY
DON'T BUY
August 20, 2019
Very popular ETF. It uses a covered call to generate yields. Holds tech giants primarily in the U.S. A great high-yield way to get technology exposure. In his mind investing in technology is all about participating in future growth. Feels putting a covered-call overlay kinda defeats a bit of the purpose. Prefers plain-vanilla technology ETF.
Show full opinionHide full opinionVery popular ETF. It uses a covered call to generate yields. Holds tech giants primarily in the U.S. A great high-yield way to get technology exposure. In his mind investing in technology is all about participating in future growth. Feels putting a covered-call overlay kinda defeats a bit of the purpose. Prefers plain-vanilla technology ETF.
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
Precious metals royalty and streamers ETF? There isn't really a pureplay streamer. U.S. Global offers a kinda quant index gold ETF, GOGO in Canada and GOAU in the U.S. One third or one fifth of their portfolio are the streamers which tends to be a little less volatile. Doesn't think you can get pureplay streamers ETF but you can get very healthy allocation to them. One of the new ETF which is still relatively small. You should trade this carefully using limit orders only. One little annoyance is that small ETF have started getting delisted overtime if they don't attract any assets. Not saying it's going to happen here. You don't lose your money if it get delisted you get it back it's just a tax event.
Show full opinionHide full opinionPrecious metals royalty and streamers ETF? There isn't really a pureplay streamer. U.S. Global offers a kinda quant index gold ETF, GOGO in Canada and GOAU in the U.S. One third or one fifth of their portfolio are the streamers which tends to be a little less volatile. Doesn't think you can get pureplay streamers ETF but you can get very healthy allocation to them. One of the new ETF which is still relatively small. You should trade this carefully using limit orders only. One little annoyance is that small ETF have started getting delisted overtime if they don't attract any assets. Not saying it's going to happen here. You don't lose your money if it get delisted you get it back it's just a tax event.
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
Good entry point? Active ETF. Philosophy behind it is really risk management. Very new, been around for barely more than a year. Quite a bit less volatile than any other Canadian dividend ETF. Canadian exposure with downside risk protection. If downside risk keeps you up at night you might want to consider adding bonds. For global exposure with very thoughtful oversight towards risk-managed global dividend mandate, thinks it's quite promising.
Show full opinionHide full opinionGood entry point? Active ETF. Philosophy behind it is really risk management. Very new, been around for barely more than a year. Quite a bit less volatile than any other Canadian dividend ETF. Canadian exposure with downside risk protection. If downside risk keeps you up at night you might want to consider adding bonds. For global exposure with very thoughtful oversight towards risk-managed global dividend mandate, thinks it's quite promising.
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
When rates go up, bonds prices fall, and vice-versa. Because this is on the short end of the spectrum it's less sensitive. BMO has a grade of 9 products for the 3 major exposures (corporate, provincial and federal bonds) and the 3 major terms lengths (short-term 0-5 years, medium-term 5-10, and long-term 10 and above). BMO's aggregate bonds until recently, ZAG, was made up by mixing those 9 products, they've started to unwrap that and now they owns the bonds directly. You need to look at the yields to maturity and total return chart. Many bonds are trading at a premium of their par-value, and if this ETF is rolling those bonds its net asset value is going to decate over time even if you are collecting a coupon that compensates you for that. So not very tax-efficient. ZPS is probably one of the better ones since it doesn't have those medium or long-term bonds. Provincial bonds are in between, they have medium risk in the world of fixed-income investing. For a core bond holding you might want to have ZAG which has a 7-8 year duration and mix in a little bit of the short-term. Maybe a little too sensitive to interests rate but not the case if you are banking on them falling and you want to participate in the price appreciation.
Show full opinionHide full opinionWhen rates go up, bonds prices fall, and vice-versa. Because this is on the short end of the spectrum it's less sensitive. BMO has a grade of 9 products for the 3 major exposures (corporate, provincial and federal bonds) and the 3 major terms lengths (short-term 0-5 years, medium-term 5-10, and long-term 10 and above). BMO's aggregate bonds until recently, ZAG, was made up by mixing those 9 products, they've started to unwrap that and now they owns the bonds directly. You need to look at the yields to maturity and total return chart. Many bonds are trading at a premium of their par-value, and if this ETF is rolling those bonds its net asset value is going to decate over time even if you are collecting a coupon that compensates you for that. So not very tax-efficient. ZPS is probably one of the better ones since it doesn't have those medium or long-term bonds. Provincial bonds are in between, they have medium risk in the world of fixed-income investing. For a core bond holding you might want to have ZAG which has a 7-8 year duration and mix in a little bit of the short-term. Maybe a little too sensitive to interests rate but not the case if you are banking on them falling and you want to participate in the price appreciation.
E.T.F.'s
WAIT
WAIT
August 20, 2019
Good time to buy? U.S. Banks ETF. Very popular, very liquid and very good at what it does. A great way for Canadians investos to access U.S. banks quickly and easily. Since it last peak the U.S. banks have been declining on price due to falling rates in the U.S.. When rates are low the banks don't do as well. If you think that maybe this is overdone then try ZBK. But he thinks there's still some downside risk to U.S. banks in particular.
Show full opinionHide full opinionGood time to buy? U.S. Banks ETF. Very popular, very liquid and very good at what it does. A great way for Canadians investos to access U.S. banks quickly and easily. Since it last peak the U.S. banks have been declining on price due to falling rates in the U.S.. When rates are low the banks don't do as well. If you think that maybe this is overdone then try ZBK. But he thinks there's still some downside risk to U.S. banks in particular.
E.T.F.'s
COMMENT
COMMENT
August 20, 2019
Very difficult to earn a stable and safe yield in the U.S. right now. Rates were just cut. If you can get a higher rate with your high interest savings account, think of that instead, not everything has to be in ETFs. There is an actively managed U.S. floating bond rate ETF in Canada, HUF.U is the ticker, it has wider spreads and harder to trade but because it's active and because it uses floating-rate swaps it does pay a little higher. If you are holding for the long-term and can wait to make back those transaction costs, think of HUF.U-T as an alternative to FLOT-N.
Show full opinionHide full opinionVery difficult to earn a stable and safe yield in the U.S. right now. Rates were just cut. If you can get a higher rate with your high interest savings account, think of that instead, not everything has to be in ETFs. There is an actively managed U.S. floating bond rate ETF in Canada, HUF.U is the ticker, it has wider spreads and harder to trade but because it's active and because it uses floating-rate swaps it does pay a little higher. If you are holding for the long-term and can wait to make back those transaction costs, think of HUF.U-T as an alternative to FLOT-N.
E.T.F.'s
TOP PICK
TOP PICK
August 20, 2019
ESG stands for environmental, social, and governance. Very trending. This particular ETF uses MSCI own ESG scoring method and rebalances the weight to maximize the score in the underlying exposure, while still tracking the parent benchmark. You are not going to get a significantly different experience investing in this over any S&P 500 or MSCI USA index ETF. It's going to give you U.S. exposure with less exposure to firearms, tobacco and that kind of thing. 0.25 MER. Yield 0.26%.
Show full opinionHide full opinionESG stands for environmental, social, and governance. Very trending. This particular ETF uses MSCI own ESG scoring method and rebalances the weight to maximize the score in the underlying exposure, while still tracking the parent benchmark. You are not going to get a significantly different experience investing in this over any S&P 500 or MSCI USA index ETF. It's going to give you U.S. exposure with less exposure to firearms, tobacco and that kind of thing. 0.25 MER. Yield 0.26%.
E.T.F.'s
TOP PICK
TOP PICK
August 20, 2019
This is what they are using in their ESG model portfolio. Tracks a quantitative index. Tries to build out a portfolio of Canadian companies that are as diverse from each others as possible, which can be a very useful corrective, particularly for the Canadian market that can be concentrated in energy and ressources. A little bit of a better risk-adjusted return, potentially, at least that's the promise. MER 0.67%. Yield 1.87%.
Show full opinionHide full opinionThis is what they are using in their ESG model portfolio. Tracks a quantitative index. Tries to build out a portfolio of Canadian companies that are as diverse from each others as possible, which can be a very useful corrective, particularly for the Canadian market that can be concentrated in energy and ressources. A little bit of a better risk-adjusted return, potentially, at least that's the promise. MER 0.67%. Yield 1.87%.
E.T.F.'s
TOP PICK
TOP PICK
August 20, 2019
Global bond ETF. One of the lowest cost actively managed bond ETF at 0.39% MER. A lot of demand for active fixed-income, because unlike the world of equities, there is a lot more evidences that shows that active managers can consistently outperform passive benchmark indices. A core allocation in some of their model ETF portfolios. Yield 2.47%.
Show full opinionHide full opinionGlobal bond ETF. One of the lowest cost actively managed bond ETF at 0.39% MER. A lot of demand for active fixed-income, because unlike the world of equities, there is a lot more evidences that shows that active managers can consistently outperform passive benchmark indices. A core allocation in some of their model ETF portfolios. Yield 2.47%.
E.T.F.'s
COMMENT
COMMENT
March 12, 2019
There are many concerns about the US and Canadian economies, but overseas as well with trade wars and Brexit. Because of the latter, he is tilting more to Canadian assets. ETFs can offer anything you can shake a stick at it because ETFs are so volatile yet charge low fees. The hawkish signals central banks were giving us at the end of last year quickly reversed this year. Don't trust these signals; central banks can reverse direction again.
Show full opinionHide full opinionThere are many concerns about the US and Canadian economies, but overseas as well with trade wars and Brexit. Because of the latter, he is tilting more to Canadian assets. ETFs can offer anything you can shake a stick at it because ETFs are so volatile yet charge low fees. The hawkish signals central banks were giving us at the end of last year quickly reversed this year. Don't trust these signals; central banks can reverse direction again.
COMMENT
COMMENT
March 12, 2019
Popular. It has a covered call overlay so it's one of the more pricey ETFs at a 1.37% MER. They do quantitative screens on the healthcare companies they pick.
Show full opinionHide full opinionPopular. It has a covered call overlay so it's one of the more pricey ETFs at a 1.37% MER. They do quantitative screens on the healthcare companies they pick.
E.T.F.'s
BUY
BUY
March 12, 2019
One of five ways to get pure, low-cost, passive Canadian ETFs like VCN. Canada's markets are mostly financials and energy which can be volatile. But these ETFs are perfectly fine. Charges only 6 basis points.
Show full opinionHide full opinionOne of five ways to get pure, low-cost, passive Canadian ETFs like VCN. Canada's markets are mostly financials and energy which can be volatile. But these ETFs are perfectly fine. Charges only 6 basis points.
E.T.F.'s
COMMENT
COMMENT
March 12, 2019
This has attracted A LOT of interest, but inflows into cannabis have plateaud. There's lots of speculation and uncertainty, though it's an interesting space. Definitely, cannabis is not a core holding of his. It's typically to see extreme moves in this ETF and sector. This charges an 0.87% MER. Also consider the smaller SEED-T.
Show full opinionHide full opinionThis has attracted A LOT of interest, but inflows into cannabis have plateaud. There's lots of speculation and uncertainty, though it's an interesting space. Definitely, cannabis is not a core holding of his. It's typically to see extreme moves in this ETF and sector. This charges an 0.87% MER. Also consider the smaller SEED-T.
E.T.F.'s
COMMENT
COMMENT
March 12, 2019
It was originally a Questrade ETF. It's an ETF of ETFs. It charges over a 1% MER, which is still lower than mutual funds, though high for an ETF. A passive MSCI world index will do a similar job to this (E.G. XWD), so compare them.
Show full opinionHide full opinionIt was originally a Questrade ETF. It's an ETF of ETFs. It charges over a 1% MER, which is still lower than mutual funds, though high for an ETF. A passive MSCI world index will do a similar job to this (E.G. XWD), so compare them.
E.T.F.'s
COMMENT
COMMENT
March 12, 2019
ZWE vs. ZWP Both are similar, the difference being the CAD currency hedge in ZWE. Also keep in mind that there's a covered call overlay on these ETFs. IF you need a lot of yield, certainly both are valid. He thinks the CAD-Euro will be neutral for a while. Perhaps buy a mix of the two.
Show full opinionHide full opinionZWE vs. ZWP Both are similar, the difference being the CAD currency hedge in ZWE. Also keep in mind that there's a covered call overlay on these ETFs. IF you need a lot of yield, certainly both are valid. He thinks the CAD-Euro will be neutral for a while. Perhaps buy a mix of the two.
E.T.F.'s
COMMENT
COMMENT
March 12, 2019
ZWE vs. ZWP Both are similar, the difference being the CAD currency hedge in ZWE. Also keep in mind that there's a covered call overlay on these ETFs. IF you need a lot of yield, certainly both are valid. He thinks the CAD-Euro will be neutral for a while. Perhaps buy a mix of the two.
Show full opinionHide full opinionZWE vs. ZWP Both are similar, the difference being the CAD currency hedge in ZWE. Also keep in mind that there's a covered call overlay on these ETFs. IF you need a lot of yield, certainly both are valid. He thinks the CAD-Euro will be neutral for a while. Perhaps buy a mix of the two.
E.T.F.'s
COMMENT
COMMENT
March 12, 2019
He likes gold in small amounts in a portfolio, not expecting it to appreciate a lot. Over the long haul, gold just sits there and is de-coupled from the stock market. Gold offers diversification. He holds very little gold. CGL is currency-hedged and is the biggest and most liquid gold ETF in Canada.
Show full opinionHide full opinionHe likes gold in small amounts in a portfolio, not expecting it to appreciate a lot. Over the long haul, gold just sits there and is de-coupled from the stock market. Gold offers diversification. He holds very little gold. CGL is currency-hedged and is the biggest and most liquid gold ETF in Canada.
E.T.F.'s
SPECULATIVE BUY
SPECULATIVE BUY
March 12, 2019
10-year horizon If you're worried that robots will take your job, use this ETF as a hedge. In Canada, you can get the similar RBOT which may be easier for investors holding Canadian dollars. Robotics will take over the industrial landscape. This will be very volatile because speculators are watching the AI space.
Show full opinionHide full opinion10-year horizon If you're worried that robots will take your job, use this ETF as a hedge. In Canada, you can get the similar RBOT which may be easier for investors holding Canadian dollars. Robotics will take over the industrial landscape. This will be very volatile because speculators are watching the AI space.
E.T.F.'s
SPECULATIVE BUY
SPECULATIVE BUY
March 12, 2019
vs. BOTZ-Q If you're worried that robots will take your job, then use BOTZ-Q as a hedge. In Canada, you can get the similar RBOT which may be easier for investors already holding Canadian dollars. Robotics will take over the industrial landscape. This will be very volatile because speculators are watching the AI space.
Show full opinionHide full opinionvs. BOTZ-Q If you're worried that robots will take your job, then use BOTZ-Q as a hedge. In Canada, you can get the similar RBOT which may be easier for investors already holding Canadian dollars. Robotics will take over the industrial landscape. This will be very volatile because speculators are watching the AI space.