Q: Pat, what do you think of me holding the BMO Low Volatility Canadian Equity ETF to lower the overall volatility of my portfolio? Thanks.

A: The BMO Low Volatility Canadian Equity ETF, $33.51, symbol ZLB on Toronto (Units outstanding: 72.8 million; Market cap: $2.4 billion;
www.etfs.bmo.com), provides exposure to a low beta-weighted portfolio of Canadian stocks. The aim is to reduce your exposure to market volatility.
The ETF selects 40 or… Read More

These two low-fee Canadian ETFs are a good way to hold bonds

These two low-fee Canadian ETFs are a good way to hold bonds

Two Canadian Bond ETFs offering low fees and high-quality holdings

Spurred by the dramatic impact of COVID-19 on the economy, the Bank of Canada has cut its benchmark interest rate to record lows.

Even for our conservative investors, we caution against investing in bonds. Today’s low interest… Read More

Q: I recently read that the hugely over-priced Tesla has been added to the S&P 500. Since I have a significant portion of my retirement funds in an S&P 500 ETF, I am concerned that the value of the ETF will be dragged down once (I think) the Tesla valuation comes down out of orbit. Should I rebalance my holdings to decrease exposure to the S&P 500? Thanks!

A: Certainly, if one stock becomes an outsized part of a market capitalization-weighted ETF, then you need to consider adjusting your overall holdings. That’s especially so if that ETF also makes up a significant part of your portfolio.
Meanwhile, you always need to keep the “Nortel factor”… Read More

The top gold and silver stocks are stored in two ETFs

The top gold and silver stocks are stored in two ETFs

Precious-metal stocks dropped, along with stock markets, in March 2020 as the pandemic forced a global shutdown. They then quickly reversed themselves to soar for investors.

For many investors, gold and silver represent “safe harbours” in turbulent times and it’s why we expect further price jumps… Read More