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

MARKET OUTLOOK

After reaching old high territory in April, U.S. and Canadian equity markets have eased back and traded sideways. Concern about the potential for a recession resurfaced as U.S.-China tariff negotiations broke down. Corporate earnings in the first quarter were OK, but not that exciting. Progress in the trade talks is necessary before equity markets are able to break through their old highs. Any negative developments economic or political could result in equity markets correcting.

TOP PICKS

David Cockfield's Top Picks

David Cockfield of Northland Wealth shares his top picks: the ZWU, the ZLB and the XSH.

BMO COVERED CALL CANADIAN UTILITIES ETF (ZWU.TO)
Last purchased in May at $13.34.

This ETF provides exposure to a portfolio of utility stocks, providing income and the potential for longer-term capital appreciation. The ETF also creates additional income by writing covered calls on its portfolio. Besides the standard power utilities, the ETF also holds pipelines and telecommunication companies. This ETF provides investors with an excellent yield in excess of 6 per cent at an expense ratio of 0.71 per cent.

BMO LOW VOLATILITY CANADIAN EQUITIES ETF (ZLB.TO)
Last purchased in May at $33.52.

This ETF provides investors with a diversified high-quality portfolio of low-beta Canadian and U.S. equities. Low-beta stocks are less sensitive to day-to-day market movements and have tended to outperform in difficult markets. The beta of the ETF portfolio is 0.79, with a dividend yield of 2.53 per cent. Management expense is 0.39 per cent.

ISHARES CORE CANADIAN SHORT TERM CORPORATE + MAPLE BOND INDEX ETF (XSH.TO)
Last purchased in May at $19.28.

This ETF gives investors a means to invest in a diversified portfolio of short-term fixed income securities. Largely focused on notes issued by Canadian chartered banks, the ETF offers an alternative to leaving funds in cash but provides full market liquidity. Along with a low management expense ratio of 0.10 per cent and a yield of 2.8 per cent, the ETF offers a safe place in difficult markets.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
ZWU N N Y
ZLB Y Y Y
XSH N N Y

 

PAST PICKS: JULY 6, 2018

David Cockfield's Past Picks

David Cockfield of Northland Wealth reviews his past picks: The XEG, Scotiabank and BCE.

ISHARES S&P/TSX CAPPED ENERGY INDEX ETF (XEG.TO)

  • Then: $13.18
  • Now: $9.13
  • Return: -31%
  • Total return: -30%

BANK OF NOVA SCOTIA (BNS.TO)

  • Then: $75.10
  • Now: $68.56
  • Return: -9%
  • Total return: -5%

BCE (BCE.TO)

  • Then: $54.57
  • Now: $60.68
  • Return: 12%
  • Total return: 16%

Total return average: -6%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
XEG N N Y
BNS Y Y Y
BCE Y Y Y

 

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