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

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

Buy these low-cost ETFs if you want bonds

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, sitting at 2.3% in March 2018.
We continue to caution… Read More

Here’s two bond ETFs if you need them

The Bank of Canada increased its benchmark interest rate in January 2018 from 1.00% to 1.25%. That’s because the Canadian economy is growing and unemployment is low. Inflation has also moved up, to 2.1% in November 2017.

We continue to caution against investing in bonds… Read More

Two ETFs may be the better way to buy bonds

The Bank of Canada increased interest rates in July 2017 for the first time since 2010. It then raised its key interest rate again in September 2017, from 0.75% to 1.00%. However, it decided to hold off on further increases in December.

We continue to caution against investing… Read More

These bond funds offer steady income

The Bank of Canada increased interest rates in July 2017 for the first time since 2010. It then raised its key interest rate again in September 2017, from 0.75% to 1.00%. But it appears unlikely that it will raise it again this year.

That’s because the… Read More