enbridge

ENBRIDGE INC. $52.48 (Toronto symbol ENB; Shares outstanding: 924.4 million; Market cap: $48.8 billion; TSINetwork Rating: Above Average; Divd. yield: 4.0%; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to Eastern Canada and the U.S....

ENBRIDGE INC. $52.48 (Toronto symbol ENB; Shares outstanding: 924.4 million; Market cap: $48.8 billion; TSINetwork Rating: Above Average; Divd. yield: 4.0%; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to Eastern Canada and the U.S....

From the time the last spike was driven to complete the new railway in 1885, Canadian



Pacific has been an essential part of Canada’s history, transportation and business life....

CANADIAN TIRE CORP., $141.12, Toronto symbol CTC.A, owns 499 Canadian Tire stores. They sell automotive, household and sporting goods. Franchisees run most of these outlets. The company’s other operations include 296 gas stations and 91 PartSource auto parts stores. More recently, Canadian Tire acquired Mark’s, which sells casual and work clothing through 381 stores. It also purchased the Forzani Group, which sells sporting goods and athletic wear through 432 stores, including Sport Chek and Sports Experts. In the three months ended April 2, 2016, Canadian Tire’s sales rose 1.8%, to $2.56 billion from $2.51 billion a year earlier. That matched the consensus forecast. Overall same-store sales improved 2.4%....

ENBRIDGE INC. $51 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 928.9 million; Market cap: $47.4 billion; Price-to-sales ratio: 1.3; Dividend yield: 4.2%; TSINetwork Rating: Above Average; www. enbridge.com) has asked regulators to extend its permit to build the Northern Gateway pipeline by three years. This $7.9 billion project would pump crude oil from Alberta to the B.C. coast. However, the permit will expire if Enbridge does not begin construction by the end of 2016. The extra time would also help the company address significant political opposition to the project. For example, it will now give Aboriginal groups a 33% stake in the project, up from 10% under the original proposal. Even so, Ottawa’s plan to ban tanker traffic on B.C.’s northern coast hurts the project’s viability. Enbridge is still a hold.

ENBRIDGE INC. $51 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 928.9 million; Market cap: $47.4 billion; Price-to-sales ratio: 1.3; Dividend yield: 4.2%; TSINetwork Rating: Above Average; www. enbridge.com) has asked regulators to extend its permit to build the Northern Gateway pipeline by three years. This $7.9 billion project would pump crude oil from Alberta to the B.C. coast. However, the permit will expire if Enbridge does not begin construction by the end of 2016. The extra time would also help the company address significant political opposition to the project. For example, it will now give Aboriginal groups a 33% stake in the project, up from 10% under the original proposal. Even so, Ottawa’s plan to ban tanker traffic on B.C.’s northern coast hurts the project’s viability. Enbridge is still a hold.

Exchange-traded funds (ETFs) give you a low-cost, flexible alternative to mutual funds. Here are five ETFs we recommend and one to sell.

ISHARES S&P/TSX 60 INDEX ETF $20.09 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index—the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.18% of assets, and it yields 2.9%. The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include. The index’s top holdings are Royal Bank, 8.6%; TD Bank, 7.7%; Bank of Nova Scotia, 5.9%; CN Railway, 4.6%; Suncor Energy, 4.4%; Bank of Montreal, 3.9%; BCE, 3.8%; Enbridge, 3.6%; Canadian Natural Resources, 3.1%; CIBC, 3.0%; and Brookfield Asset Management, 2.8%....

ISHARES MSCI CANADA INDEX FUND $24.16 (New York symbol EWC; buy or sell through brokers; ca.ishares.com) holds the stocks in the Morgan Stanley Capital International Canada Index. The fund has a 0.48% MER and yields 2.4%. The index’s top holdings are Royal Bank, 7.9%; TD Bank, 7.1%; Bank of Nova Scotia, 5.4%; CN Railway, 4.2%; Suncor Energy, 4.0%; Bank of Montreal, 3.6%; Enbridge, 3.3%; Canadian Natural Resources, 2.8%; and CIBC, 2.8%. If you want to own a Canadian index fund, you should buy the iShares S&P/TSX 60 Index ETF (see previous page). You’ll pay about a third of the management fees....

These six ETFs hold mostly blue chip, widely traded stocks on Canadian and U.S. exchanges. All of them mirror, or track, the performance of major stock market indexes. That’s opposed to narrower indexes focused on, say, resources or themes such as solar power or biotech. Of course, you pay brokerage commissions to buy and sell these ETFs. But their low management fees give them a cost advantage over most mutual funds. Below we update our advice on all six—five buys and one we don’t recommend....