David Cockfield, managing director and portfolio manager at Northland Wealth Management
Focus: Canadian equities and ETFs
In the first week of January 2017 the TSX closed at 15.586. Recently, the TSX has been trading in a narrow range at virtually the same level. With U.S. threats to tear up NAFTA, taxes on softwood exports, and attacks on our dairy industry, our hesitant equity markets are understandable. In the U.S., the Dow topped out in early March as the realization that Trump’s agenda for tax cuts, infrastructure spending, and revising health care was unrealistic. This present sideways market action will likely continue until progress is made in achieving some of Trump’s objectives.
BMO MSCI EUROPE HIGH QUALITY EQUITIES HEDGED TO CAD INDEX ETF (ZEQ.TO)
This ETF attempts to replicate the performance of the MSCI Europe High Quality Index Hedged to the Canadian dollar. The main geographic concentrations are the U.K. (39 per cent), Switzerland (19 per cent) and Germany (14 per cent). The main industry concentrations are consumer staples (28 per cent), health care (21 per cent), industrials (19 per cent) and consumer discretionary (14 per cent). This ETF offers diversification into a number of high quality European multi-nationals in safe countries and good business sectors. Management costs are reasonable at 0.45 per cent. Last purchased in May at $20.43.
ISHARES NORTH AMERICAN TECH ETF (IGM.US)
This ETF mirrors U.S. technology equities as represented by the S&P North American Technology Sector Index. The top five holdings are: Apple Inc., Microsoft Corp., Amazon Inc., Facebook Class A, and Alphabet Class A and Class B. The tech sector has performed well and will continue to perform well as the U.S. economy grows. This ETF offers a diversified way to participate in the U.S. tech sector at the reasonable cost of 0.47 per cent. Last purchased in May at $145.98.
BCE is the largest communication company in Canada with an excellent growth record in earnings and dividend payouts. Demand for the various services offered by BCE continues to grow despite slow overall growth in the Canadian economy. The stock ran up from $57.50 in March to $62.00 in late April. Recently, the stock has pulled back to the $60.00 range, providing a buying opportunity. Offering a safe dividend yielding 4.77, the stock is attractive for income-seeking investors at under $60.00. Last purchased in November 2016 at $58.02. (BNN is a division of Bell Media, owned by BCE.)
PAST PICKS: APRIL 16, 2016
BMO LOW VOLATILITY CANADIAN EQUITY ETF (ZLB.TO)
- Then: $27.03
- Now: $29.70
- Return: +9.87%
- TR: +12.59%
BMO EUROPE HIGH QUALITY EQUITIES HEDGED TO CAD INDEX ETF (ZEQ.TO)
- Then: $17.33
- Now: $20.18
- Return: +16.44%
- TR: +18.87%
BROOKFIELD PROPERTY PARTNERS (BPY_u.TO) – Reported by update July 8, 2016. Sold at $31.00.
- Then: $30.12
- Now: $29.22
- Return: -2.98%
- TR: +1.90%
TOTAL RETURN AVERAGE: +11.12%