Investors have enjoyed an equity market rebound in Canada and the U.S.  Concerns about economic growth have subsided as economic reports continue to show steady but slow upward progress.  Canada has seen strong performance in the manufacturing sector, employment and oil prices.  With this encouraging background we expect equity markets in both Canada and the U.S. to move higher during the quarter.

TOP PICKS:

BMO Low Volatility Canadian Equity ETF (ZLB.TO)  

A Canadian ETF that allows investors to own a diversified portfolio of Low Beta Canadian equities.  Low Beta stocks are less sensitive to day to day market movements and have out-performed the broad market in recent years.  The Beta of the portfolio is 0.78, the yield is 2.38 percent and the management fee is 0.35 percent.  This ETF has significantly out-performed the TSX over the last 3 years. Last purchased in March @ $26.78.

BMO MSCI Europe High Quality Equities Hedged to CAD Index ETF (ZEQ.TO)

This ETF attempts to replicate the performance of the MSCI Europe Quality- 100 percent hedged to Canada Index.  The main geographic allocations are the U.K. 43.8 percent, Switzerland 19.0 percent and Germany 9.5 percent.  The main industry concentration is Consumer Staples 30.9 percent, Health Care 17.4 percent, Consumer Discretionary 16.2 percent and Industrials 16.1 percent.  We feel European equities offer good value particularly in the countries and sectors represented in this portfolio.  Considering the looming vote in the U.K. as to whether the U.K. remains in the E.U. investors might wait to see how this proceeds.  A yes vote causing the ETF to decline could lead to a buying opportunity. The portfolio is dominated by high quality, multi national corporations that will not be that affected by the U.K. leaving the E.U.   Last purchased in January @ $16.87.

Brookfield Property Partners (BPY_UN.TO)

Brookfield Property Partners is a global property management company that owns and manages office, industrial, retail, hotel and residential properties worth some $50 billion.  The high quality office properties are located in major cities in the U.S., Canada and Australia.  The retail properties are mainly in the U.S. and Brazil.  The residential properties are located in North America.  Industrial properties are in North America, Europe and China.  Hotel properties are in North America and Australia and include casinos.  The stock has been a laggard but recently has had a strong uptrend.  The yield is just under 5 percent.  Last purchased in April @ $29.61.

Past Picks: Apr. 10, 2015

Toronto-Dominion Bank (TD.TO)

Vanguard Dividend Appreciation ETF (VIG.N)

BMO Low Volatility Canadian Equity ETF (ZLB.TO)

Total Return Average : +2.27%