David Cockfield, managing director and portfolio manager at Northland Wealth Management
Focus: Canadian equities and ETFs

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MARKET OUTLOOK

Canadian equity markets are hovering some 300 points below recent new highs, but at levels reached early this year. Despite our previously good Canadian economic numbers, investors remain nervous as do corporations with NAFTA negotiations still undecided and new tariffs from the U.S. possible. Our recent political spat with Saudi Arabia has added an additional uncertainty. Good corporate earnings reports will help support present market levels, but high levels of uncertainty will stand in the way of any strong upward market move.

TOP PICKS

BMO LOW VOLATILITY CANADIAN EQUITY ETF (ZLB.TO)

This Canadian equity EFT is designed to provide investors exposure to a low Beta portfolio of large-cap Canadian stocks. The Beta of a security measures its sensitivity to market movements. If the market is down, a low Beta security will decline less. The underlying portfolio is rebalanced in June and reconstructed to reflect changes in Beta ratings in December. Yield is 2.59 per cent, with a management expense of 0.39 per cent. Last purchased in August at $30.85.

ISHARES CORE MSCI ALL-COUNTRY WORLD EX-CANADA ETF (XAW.TO)

This ETF offers global portfolio diversification by investing in a number of ETFs, each representing particular countries or sectors not including Canada. Country weightings are: U.S., 55.01 per cent; Japan, 8.22 per cent; China, 3.62 per cent; and France, 3.25 per cent. MER is a low 0.22 per cent. Last purchased in August at $26.34.

ISHARES NORTH AMERICAN TECH ETF (IGM.N)

This ETF mirrors the S&P North American Technology Sector Index. The top five holdings are: Apple Inc., Microsoft Corp., Amazon Inc., Facebook Class A and Alphabet A and B. This ETF allows Canadian investors to participate in the best tech sector companies in the world. Past performance has been excellent. Management cost is a low 0.48 per cent. Last purchased in August at $199.82.

PAST PICKS: JULY 26, 2017

BMO LOW VOLATILITY U.S. EQUITY ETF (ZLU.TO)

• Then: $29.05
• Now: $33.06
• Return: 14%
• Total return: 16%

BMO US HIGH DIVIDEND COVERED CALL ETF (ZWH.TO)

• Then: $19.25
• Now: $20.84
• Return: 8%
• Total return: 14%

INTER PIPELINE (IPL.TO)

• Then: $24.85
• Now: $24.25
• Return: -2%
• Total return: 4%

Total return average: 11%

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