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Likes this for the European exposure, not a euro ETF, of which there are several of. Some of them are only the euro countries, some are the top 50 countries in Europe only and some are specialized in the EU. He prefers it being broader based so he can have the UK included. Good diversity and its cheap.
Hasn’t been buying this because he tends to have a lot of banks anyway and this is heavily into the banks. However, this is fine as everyone else is concerned. A good play. You might want to consider that we have had this good dividend play for quite a while now and maybe the thing to be looking at a little bit more is something that is more growth oriented.
Copper? You could play this through HBP Comex Copper Bull+ (HKU-T) but that is a leverage copper play where you could lose money even if you are right. Another one is the Global X Copper Miners (COPX-N) which is a play on the copper miners themselves. Also, you could look at BMO S&P/TSX Base Metals (ZMT-T), a base metal play.
As a play on the housing market? Doesn’t know if there is a lot of difference between this, iShares S&P/TSX Capped REIT (XRE-T) and BMO Equal Weight REITs Index (ZRE-T). They all seem to have much the same components. It all depends on how much RioCan (REI.UN-T) you want, but there is nothing wrong with having this. He takes a look at the costs and takes the cheapest.
Likes the financial sector. This may have some of the lifecos in it as well as some of the mutual funds, so he would prefer a straight play on the banks. On the other hand, insurance companies have come back quite a long ways from where they were getting clobbered. Prefers bank ETFs such as BMO Equal Weight Bank (ZEB-T) or BMO Covered Call Cdn Banks (ZWB-T).
As a core holding for a fixed income portion of a portfolio? How does it react to interest-rates? This is a new product from First Trust which is trying to find something that is not rate sensitive short-term. You are getting the rate of return on floating rate loans, which will be a little bit higher then T-bills. As interest rates go up, this will go up as well.
This is an oddball, basically in the sense that it is an ETF of other ETFs, so you get a real mixed bag of strategies. Sometimes believes that the “return on capital” can actually be a “return of capital” so you have to watch this a little. Could have place in your portfolio. It is pretty conservative.
Spread strategies. This strategy is designed to reduce the risks and the cost of the option you want to hold. If you are bullish and you want a Call, you put on a Spread. E.g. you have a $50 Call, which costs $1.50 and you sell a $55 Call for $0.75, so you have the play between $.50 (?) and $.75 so the maximum you are going to make on this is about $.75.
BMO Dow Jones Industry (ZWA-T) or Horizons Enhanced US Equity (HES-T)? These writes Calls on Dow Jones Industrials and on the individual stocks, rather than on the index. Likes both and that he can use these to basically draw income from the US market and will be taxed as capital gains. However, there is a big difference between the two. HES-T writes options on all the stocks all the time, whereas this one is on 50%-60%. This one has outperformed HES-T. If you are looking for income as well as the upside, you should look at this one.
BMO Dow Jones Industry (ZWA-T) or Horizons Enhanced US Equity (HES-T)? These writes Calls on Dow Jones Industrials and on the individual stocks, rather than on the index. Likes both and that he can use these to basically draw income from the US market and will be taxed as capital gains. However, there is a big difference between the 2. This one writes options on all the stocks all the time, whereas ZWA is on 50%-60%. ZWA has outperformed this one. If you are looking for income and expecting the market to be relatively flat, then you look at this one.
What ETF would you suggest for investing in Japan? Likes the iShares MSCI Japan (EWJ-N) although there are lots of other ETFs out there. This one has the major indices covered. Financials are about 20%, industrial/technology at around 15%. Most of his ETFs have veered towards the US, but also more towards Europe and the UK.