Mike Philbrick’s Top Picks for Feb. 26, 2026

Mike Philbrick, CEO, ReSolve Asset Management

Focus: Exchanged-traded funds (ETFs)

Top Picks: iShares S&P/TSX Global Base Metals Index ETF, iShares MSCI Brazil ETF, iShares Ethereum Trust ETF

MARKET OUTLOOK:

AI’s Next Phase: Real Assets, Regional Diversifiers, and Digital Rails

Markets are still being pulled in two directions. On the surface, the major indexes look resilient, but underneath we’re in a very different regime: higher dispersion, faster leadership changes, and more frequent air pockets. That’s consistent with what we’d expect when investors start to question the durability of long-duration cash flows, especially in parts of “asset-light” software, while the real economy is being forced into an “asset-heavy” upgrade cycle.

The clean way to frame 2026 is AI moving from code to atoms. The first phase was the digital brain builders—chips, hyperscalers, core networking. The next phase is physical: data centres, power, grids, electrification, and the materials and equipment needed to keep modern complexity running. That’s why I’ve been focused on copper and base metals as a tell. They’re no longer just cyclical growth trades—they’re bottleneck inputs for wiring the future.

Diversification away from U.S. mega-cap concentration also matters. One place to express that is Latin America—a region with real-asset sensitivity, heavyweight financials, and currency torque. In the right macro backdrop, it can behave like a leveraged play on reflation, commodities, and a softer U.S. dollar.

Finally, digital assets are continuing to institutionalize. If Bitcoin is the “scarcity” narrative, Ethereum is the infrastructure layer—the network that increasingly underpins stablecoins, tokenization, and on-chain settlement. That gives it a different fundamental driver than pure “digital gold.” It’s higher volatility, but the adoption pathway is tied to real utility: payments rails, capital markets plumbing, and the rise of programmable finance.

Bottom line: this is a stock-picker and sector-rotation tape. Stay diversified, expect volatility, and lean into exposures linked to the physical buildout, real assets, and the next stage of digital adoption.

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TOP PICKS:

iShares S&P/TSX Global Base Metals Index ETF (XBM TSX)

iShares S&P/TSX Global Base Metals provides equity exposure to global base-metals miners (e.g., copper, aluminum, diversified miners) through a single Canadian-listed ETF. It’s a “miners’ basket,” so you get operating leverage to underlying metal prices rather than pure spot commodity exposure.

Why now: 2026’s clean macro frame is AI moving from code to atoms—data centers, grids, electrification, defense, and industrial capex. That physical buildout is materials-intensive, and base metals sit at the center of the wiring and equipment cycle.

Why it can be sustainable: This isn’t a one-quarter trade. Supply additions in mining are slow (permitting, capex, long lead times), while demand drivers are multi-year: grid upgrades, energy security, electrification, and infrastructure investment.

Portfolio takeaway: Use XBM as a satellite real-asset sleeve alongside a core equity portfolio. Expect volatility: miners are equities and can draw down with global growth scares. Position sizing matters, and it works best as part of a diversified “real assets/industrial cycle” bucket rather than a standalone bet.

iShares MSCI Brazil ETF (EWZ NYSE)

iShares MSCI Brazil gives broad exposure to Brazilian large and mid-cap equities, typically dominated by financials and commodities/real-asset-linked companies, making it a high-beta expression of Brazil’s domestic cycle plus global commodity sensitivity.

Why now: If markets broaden beyond U.S. mega-cap leadership, Brazil can benefit from a value/real-asset tilt, plus potential upside from a softer U.S. dollar and improving global industrial momentum.

Why it can be sustainable: Brazil’s index composition is naturally geared to real assets and financials, which can outperform in reflationary or commodity-supported environments. It also diversifies away from U.S. tech concentration.

Portfolio takeaway: Treat EWZ as a satellite diversifier—it can add differentiated return drivers (foreign exchange, rates, commodities), but it comes with higher volatility. Key risks are currency swings, domestic politics/policy, and commodity cycle reversals.

iShares Ethereum Trust ETF (ETHA NYSE)

ETHA provides spot Ether exposure through an ETF wrapper—simple access to Ethereum without wallets or exchanges. It’s a direct expression of ETH price risk and reward.

Why now: Digital assets are continuing to institutionalize. If Bitcoin is the “scarcity” narrative, Ethereum is the infrastructure layer—increasingly tied to stablecoins, tokenization, and on-chain settlement, which are real adoption pathways beyond speculation.

Why it can be sustainable: The long-term driver is utility: programmable finance, payments rails, and capital-markets plumbing migrating on-chain. As regulation clarifies and institutions adopt ETFs, the addressable investor base broadens.

Portfolio takeaway: ETHA is best used as a small, intentional satellite allocation—high volatility is the feature and the risk. That volatility can also create a disciplined rebalancing opportunity: if ETH spikes, trim back to target; if it sells off, top up back to target—so the position doesn’t take over the portfolio in rallies or disappear after drawdowns. Size it so the portfolio remains functional through large declines and treat it as optionality on network adoption rather than a core holding.

PAST PICKS: JULY 30, 2026

Vanguard FTSE Developed All Cap ex U.S. Index ETF (VDU TSX)

Then: $49.36

Now: $60.15

Return: 22%

Total Return: 24%

BMO Equal Weight Global Gold Index ETF (ZGD TSX)

Then: $154.01

Now: $355.04

Return: 130%

Total Return: 131%

Fidelity Advantage Bitcoin ETF (FBTC TSX)

Then: $53.36

Now: $30.24

Return: -43%

Total Return: -43%

Total Return Average: 37%