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3 top ETF picks from portfolio manager John Hood

John Hood, president and portfolio manager at J.C. Hood Investment Counsel.

John Hood is president and portfolio manager at J.C. Hood Investment Counsel. His focus is on ETFs and options.

Top picks:

The Dow and Canadian banks have had a strong recovery already so this covered call strategy should modify volatility yet provide good growth since only approximately 50 per cent of covered calls ETFs are hedged with the calls.

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BMO Covered Call DJIA Hedged to CAD ETF

BMO Covered Call Canadian Banks ETF

BMO 2015 Corporate Bond Target Maturity ETF

Past picks: Sept. 16, 2011

iShares S&P 500 Index Fund CAD Hedged  

Then: $13.99
Now: $16.67
Total return: +21.23 per cent

iShares S&P/TSX Capped Energy Index Fund

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Then: $16.87
Now: $17.07
Total return: +3.48 per cent

BMO S&P/TSX Equal Weight Banks Index ETF

Then: $16.37
Now: $17.47
Total return: +10.67 per cent

Total Return Average: +11.79 per cent

Market outlook

We have been saying for many months that there was no need for panic and to maintain your asset allocation particularly the U.S. allocation. The EU crisis, as we suggested is working its way forward, or at least the tools are in the toolbox regarding Eurobonds, the German constitutional issue and the Dutch election. Nevertheless we are not raging bulls hence the covered calls recommendation but we are looking to add to our equities in EM, EU and China once the evidence is there. Some commodities as well.

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Watch Mr. Hood on BNN.

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