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COMMENT
After the recent 20% decline, investors are now taking on risk. The rebound has happened. Buy the dips is still the mantra. Over the last 11 years, the US market has been the *only* game in town. Canada and MSCI are small in comparison, dead money really. That said, the darling from the previous decade won't be the darling in the next. Where is the puck going? Over 20 years, Canadian returns total 583% vs. the US 209%, both is USD. Problem those Canadian returns haven't happened in the past 11 years. The lesson: diversification is key.
COMMENT
XUU vs. XSP as the better play in the US market XSP is the S&P and CAD-hedged, while the XUU is the broad US market, including the small- and mid-caps without the CAD hedge. He prefers to play in USD, because the USD is a flight to safety when world markets struggle. You want to hold USD as a general rule.
E.T.F.'s
BUY
XUU vs. XSP to play the US market XSP is the S&P and CAD-hedged, while the XUU is the broad US market, including the small- and mid-caps without the CAD hedge. He prefers to play in USD, because the USD is a flight to safety when world markets struggle. You want to hold USD as a general rule.
E.T.F.'s
BUY
Is all the bad news baked in? A good China ETF. China is the second-largest economy in the world, but has less than 2.5% exposure in the MSCI indexes. America has peaked, so money managers will be chasing China. This is a 10-20-year play with lots of corrections. Dont time this. A long-term secular play. Edge money in patiently over time.
E.T.F.'s
BUY
Preferreds are Jekyll and Hyde: when markets are calm, they act normally and give you a coupon-like return, but when markets act crazy, they act like an equity. All preferred share indices have declined 10-15% because of the rate reset and credit. When there's equity duress and rate resets, these ETFs go down. Instead, buy an actively managed ETF; it's worth the extra fee.
E.T.F.'s
PAST TOP PICK
(A Top Pick Nov 23/18, Up 3%) Instead of shorting the S&P, buy this (see his earlier comments). You don't receive any interest; it's a total return swap. Wonderful tax exposure. You need this to diversify your portfolio.
Mike PhilbrickOwned
E.T.F.'s
COMMENT
In a defensive sector which is the right one to be one during market duress. But you're selling calls to create extra income. This is merely okay. Total returns have been flat lately, though ZWU has done better than the overall markets. Hold this outside the RRSP, given tax considerations. Just remember: if the market drops 30%, ZWU will fall 24%.
E.T.F.'s
BUY
XEC vs. XEF 50% of the world's GDP comes from emerging markets where you need to invest some capital. XEF is the rest of the developed world outside the U.S. He likes both, preferring them over the US market which he thinks has peaked. These ETFs are complimentary and don't overlap. They hold equities, to you bear equity risk.
E.T.F.'s
COMMENT
What are the benefits and costs of ETFs? Are they like GICs? Better than stocks? ETFs allow investors to diversify, the greatest innovation in investing of the past 20 years. They are magic. ETF's have reduced fees, certainly cheaper than mutual funds. Use these to diversify. For example, you can buy the entire Chinese stock market. Yes, consider ETFs.
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