iShares International Fundamental Index ETF (TSX: CIE)
I have to admit I really like the theory behind fundamental ETFs. The goal of a fundamental approach is to weight companies in the index based on their financial health, rather than by their size. Ideally, because of this focus on quality, it should provide a return that is comparable to a market cap weighted index, with less volatility. In this case, the top 1000 listed companies that trade...
Read MoreVanguard U.S. Total Market Index ETF (CAD-hedged) (TSX: VUS)
Of the U.S. equity ETFs on the Focus List, this was the worst performer for the three months ending January 31, falling by 7.8%, compared with a drop of 6.6% for the iShares Core S&P 500 Index ETF (TSX: XSP). The main reason for this performance differential is VUS provides exposure to the entire U.S. equity market. Holding approximately 3,700 individual securities, about one third of the...
Read MoreiShares S&P/TSX Completion Index ETF (TSX: XMD)
It is rather tough to find a good small / mid-cap ETF with a focus on Canadian equities. There are really only about four that are considered to be Canadian Small / Mid Cap Equity ETFs. Sadly, this is the best option. Essentially, it provides exposure to the Canadian traded companies that are part of the S&P/TSX Composite Index, but are not part of the S&P/TSX 60 Index. Because of this,...
Read MoreBMO Low Volatility Canadian Equity ETF (TSX: ZLB)
Low volatility funds and ETFs have become rather popular with investors lately, and it’s not hard to see why. Who doesn’t love the idea of getting returns that will come pretty close to the broader market, but with a lot less downside? It sounds too good to be true, and while the track records are still relatively short, the early results are very encouraging. This was the best performing...
Read MoreiShares Canadian Universe Bond Index ETF (TSX: XBB)
With the Bank of Canada expected to keep interest rates on hold for the next little while, bonds are likely to remain a positive contributor to portfolio performance. This ETF is my top pick at the moment. It provides exposure to a diversified portfolio of Canadian government and investment grade corporate bonds. It is a high quality portfolio, with about 70% invested in government issues, and...
Read MorePowerShares Senior Loan CAD Hedged ETF (TSX: BKL)
With worries a slowing economy could result in higher default rates, high yield bonds and leveraged loans were sold off, pushing yields and credit spreads higher. For the three months ending January 31, BKL lost nearly 2%, but managed to finish in the upper half of its peer group. This loss was even with the U.S. Federal Reserve finally moving rates higher in December. This was the worst...
Read More