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The only caveat he would have on this is that whenever you take a market cap Index and tweak it dividend weight, you create inherent biases. With emerging markets, when you create that, you tend to overweight Russia and China, which are both high dividend yielding countries. If you are comfortable with those sectors, this is a great dividend one.
We’ve all fallen in love with income investing because interest rates are so low, so everybody is looking afield for income. He would caution people to not just stick to Canada, but also look further afield. This ETF has done incredibly well. As interest rates have declined, there are some issues in terms of Cap Rates etc. If an income investor and looking for higher income, he would look to something else such as the emerging-market bond complex such as iShares Emerging Markets Local Currency Bond (LEMB-N). It has a little higher yield.
Sell this and Buy the hedged version? He just took off of his Canadian hedges today. The Cdn$ has had a strong run up, and there are built-in expectations by the Bank of Canada that the Cd$ is going to go higher. Thinks Bank of Canada has gotten a little ahead of itself and the inflation and growth forecasts for next year are a little too robust. He wouldn’t be worried about the Cdn$ going up further. If you want to be long the US market, you want to stay with the unhedged version.
Sell this and Buy the hedged version? He just took off of his Canadian hedges today. The Cdn$ has had a strong run up, and there are built-in expectations by the Bank of Canada that the Cd$ is going to go higher. Thinks Bank of Canada has gotten a little ahead of itself and the inflation and growth forecasts for next year are a little too robust. He wouldn’t be worried about the Cdn$ going up further. If you want to be long the US market, you want to stay with the unhedged version.
Sell this and Buy the hedged version? He just took off of his Canadian hedges today. The Cdn$ has had a strong run up, and there are built-in expectations by the Bank of Canada that the Cd$ is going to go higher. Thinks Bank of Canada has gotten a little ahead of itself and the inflation and growth forecasts for next year are a little too robust. He wouldn’t be worried about the Cdn$ going up further. If you want to be long the US market, you want to stay with the unhedged version.
The pillars of Trump’s platform had infrastructure, lower taxes and reduced regulations. It is pretty clear that infrastructure and lower taxes is going to be, if ever, some time in the future. However, reduced regulations is something that can be done. They said that regulations don’t necessarily have to change the laws, they just have to reinterpret existing laws. Trump’s overall impact on the global economy won’t be as large as people had thought, but his sectorial impact will be massive. Banks are incredibly under owned and under loved, and extremely oversold.
Sweden is a country with less than 10 million people, but incredibly geared towards the global economic cycle. If you believe we are in this mild, synchronized global upturn, then you want a very highly industrialized nation, geared towards a global recovery. Sweden accomplishes that. Bloomberg just put out their index and said Sweden ranked 2nd in the Innovation Index.
Is robotics a good sector?The macro trend in robotics is definitely a real one. Unfortunately, a lot of people know about it. Manufacturing in the US, since the financial crisis, is up about 20%, and yet the rise in employment is only up 5%. This is a good theme to play long-term, but wait for a pullback.