Good long-term hold? Try to be careful on theme-oriented ETFs. Don’t confuse good intentions like wanting clean water with investing. Small-cap stuff is volatile. Use your portfolio in a more conventional way. Don’t try to serve more than one purpose with your portfolio. Social agenda should be separate.
When you’re investing in EM, you’re investing in the future. This is where the growth will be. Dominated by China, technology, and AI as a product, where the Chinese are moving ahead of the US. His firm has 10% of portfolios in this area, they believe in this story so much. Huge potential middle-class populations in the EM like India and China.
Late cycle, so want deep cyclicals, which are going to react the best. Global base metals are probably the #1 sector to play late cycle. Dominated by all the great base metals companies like BHP and Rio Tinto. Good exposure to copper and zinc. Zinc is part of the theme of electric cars, and batteries are moving from cobalt to zinc especially in China. New money hasn’t gone into this area, and continuing global growth needs these metals.
Probably would be a buyer. Owns ZBK instead. Likes US banks, not currency hedged, as thinks Canadian dollar will still see weakness. US banks cheaper than Canadian right now. US banks numbers pretty good today. Investors will come out of tech and will probably will go into US banks.