PowerShares S&P/TSX Composite Low Vol ETF
The problem I see with many of the low volatility mandates is that investors have bid up the valuation levels of many of the stocks held in these products to very high levels. For example, according to Morningstar, the P/E ratio of the BMO Low Volatility Canadian Equity ETF (TSX: ZLB) is 21.4 times forward earnings. In comparison, the S&P/TSX 60 Index trades at approximately 15 times forward earnings. While ZLB has significantly outperformed the other Canadian low vol ETFs, I don’t see how that is sustainable at these levels of valuation. In comparison, this PowerShares ETF trades at a valuation level that is more in line with the broader market. Further, if you consider the forward looking growth rates, TLV looks to have a more positive outlook than ZLB, making the valuation levels that much more compelling.
Read MorePowerShares FTSE RAFI Canadian Fundamental Index ETF (TSX: PXC)
This rules based ETF is built using a process that rates and ranks the Canadian universe of stocks on key fundamental factors including sales, cash flow, book value, and dividends. The stocks are each ranked by the four fundamental measures, which results in a total score for each company. They are then ranked by their scores from best to worst, and the top 100 or so make up the ETF. Stock weights are determined by the fundamental score, with the better ranked stocks making up a higher weight in the ETF. There are no constraints on sector weights, which is where I begin to get a little worried about this particular ETF.
Read MoreManulife U.S. Equity Fund
The U.S. market is one of the toughest to beat on a consistent basis, which is why I tend to favour low cost ETFs for my U.S. equity expo-sure. However, if you are looking for a well-managed, high quality, mutual fund that will give you a shot at outperforming the S&P 500 once in a while, then this fund, which mirrors the Mawer U.S. Equity Fund (MAW 108) is definitely worth considering.
Read MoreTrimark U.S. Small Companies Class
With an average 23% cash weighting, the fund was able to outpace both its benchmark and peers in the first quarter. With U.S. small cap names selling off, the high cash balance helped to provide a buffer to this downside.
Read MoreFidelity Canadian Large Cap Fund
Despite lagging the S&P/TSX Composite Index, the fund still managed to outpace most of its peers in the first quarter. Much of this outperformance happened in January and February, when its underweight exposure to energy names and foreign holdings helped. However in March, with energy on the rebound and the Canadian dollar rising against the U.S. greenback, the fund lagged its peers.
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