Mike Philbrick, director of ReSolve Asset Management
Focus: ETFs

MARKET OUTLOOK

The pandemic has created a split in markets, a bifurcation between the haves and have nots. Those companies who were and continue to be negatively impacted by the supply and demand shocks sweeping through the economy and those companies who have been and are massive beneficiaries of a “fast forwarding” of the digitization and portability of work. This has resulted in a decade’s worth of adoption and change in a matter of weeks.

Thus some parts of the economy are absolutely booming while other parts of the economy will not recover easily or at all.

The difference in the performance of the NASDAQ Canadian stocks of U.S. small cap stocks is stark. US Value stocks would be an example of an even harder hit area of markets while those with gold exposure in their portfolios have benefited nicely.

All of this is happening at the same time – unprecedented times indeed.

 TOP PICKS

SPROTT PHYSICAL SILVER TRUST (PSLV TSX)

PSLV provides a secure, convenient and exchange-traded investment alternative for investors who want to hold physical silver. It is actual silver bullion, can take physical delivery monthly with certain restrictions and is held at the Canadian mint.

HORIZONS ENHANCED INCOME GOLD PRODUCERS ETF (HEP TSX)

HEP is equal weight rather than market cap weighted and has a covered writing overlay to enhance income to 4.5 per cent. There are drawbacks to covered writing in strong trending markets. The fee is 0.65 per cent but that's acceptable given the extra effort required for covered writing.

THE BITCOIN FUND (QBTC-U TSX)

The Bitcoin Fund from 3iQ holds Bitcoin stored “offline." It's a closed-end fund that trades on the TSX, is regulated, offered by prospectus and CRA-compliant. The management fee is 1.95 per cent. It's a unique opportunity for Canadians to own this emerging asset class via a heavily regulated investment channel.

PAST PICKS: JUNE 25, 2019

HORIZONS MORNINGSTAR HEDGE FUND INDEX ETF (HHF TSX)

• Then: $14.15
• Now: $14.16
• Return: 0.2%
• Total return: 0.2%

ISHARES GOLD BULLION ETF (CGL/C TSX)

• Then: $11.96
• Now: $14.50
• Return: 21%
• Total return: 21%

CAMBRIA CORE EQUITY ETF (CCOR NYSE)

• Then: $27.48
• Now: $28.41
• Return: 3%
• Total return: 5%

Total return average: 10%

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