Two ETFs may be the best choices in bonds

Two ETFs may be the best choices in bonds

The Bank of Canada has held its benchmark interest rate steady at 1.75% since October 2018. The Canadian economy is growing and unemployment is low, although annualized inflation is sitting just under its 2.0% target.

We continue to caution against investing in bonds. Still-low interest rates… Read More

These ETFs aim for seasonal gains

Seasonal investment strategies study the historical performance of stocks, bonds and other asset classes during specific times of year. They then aim to benefit from those patterns. However, these strategies are based on the past and do not always work. Holding stocks with strong fundamentals—and… Read More

Gold ETFs win: base metals lose

Precious metal ETFs were the star performers in August. The physical gold ETF SPDR Gold Shares (GLD) gained 12.1%, the iShares Silver ETF (SLV) rose 8.6%, and the Aberdeen Physical Platinum ETF (PPLT) improved 4.2%.
Gold miners fared equally well with the VanEck Gold Miners… Read More

Stock market’s gains top bonds

Stock market volatility sometimes appears when least expected. However, volatility as measured by the BetaPro S&P 500 VIX Futures ETF (Toronto symbol HUV), has substantially subsided in the months following a big spike in December 2018. As a result, this ETF, which gains in value… Read More

How to choose the best investments for children

How to choose the best investments for children

Traditionally, there have been several options for parents and grandparents looking to make investments for children. But here’s how to choose the best investments for children in 2019.
Taking the time to pick the right investments for children and grandchildren is a worthwhile endeavour. If the child is under… Read More

Q: May I ask your opinion on ZWB (BMO Covered Call Canadian Banks) and HYGH (iShares Interest Rate Hedged High Yield Bond ETF)? In addition, does “covered call” offer any appreciable advantage over straight bank stocks or bank ETFs? And does the hedging of HYGH add risk or unpredictability versus the “straight” HYG? Thank you.

A: The BMO Covered Call Canadian Banks ETF, $18.62, symbol ZWB on Toronto (Units outstanding: 68.1 million; Market cap: $1.3 billion; www.bmo.com/gam), holds shares of Canada’s six largest banks (CIBC, TD Bank, Bank of Montreal, Bank of Nova Scotia, Royal Bank and National Bank) either… Read More

Rising rates limit the appeal of bond ETFs

The Bank of Canada increased its benchmark interest rate in July 2018 from 1.25% to 1.50%. That rate could rise further later this year on stronger economic growth and low unemployment. Inflation has also moved up steadily, sitting at 3.0% in July 2018.
We continue to… Read More

Two ETFs offer high-quality bonds at low fees

The Bank of Canada increased its benchmark interest rate in January 2018 from 1.00% to 1.25%. That rate could rise further later this year on stronger economic growth and low unemployment. Inflation has also moved up, although it eased somewhat from 2.3% to 2.2% in… Read More