John Hood is president and portfolio manager of J.C. Hood Investment Counsel. His focus is on exchange traded funds and options.
iShares S&P 500 Index Fund CAD-Hedged
I have been bullish on the U.S. recovery throughout the recent volatility, hence the ishares XSP, which is in all of my portfolios. I do, however, also like the BMO Dow Jones Industrial Average hedged ETF , which is BMOs covered call on the Dow. It should mollify some volatility and generate income.
BMO Equal Weight Global Base Metals Hedged to CAD Index ETF
I also like ZMT, which is base metals futures - copper 35%; zinc, nickel and aluminum at about 15-20% each.
Claymore China ETF
CHI and also BMO's ZCH are China based. Both offer domestic as well as export-oriented companies and I believe that Chinese consumer demand will continue to be high.
Past Picks: Jan. 28, 2011
BMO NASDAQ 100 Hedged to CAD Index ETF
Total return: +11.28%
iShares CDN S&P/TSX 60 Index Fund
Total return: -4.66%
iShares CDN S&P/TSX Capped Energy Index Fund
Total return: -11.74%
Total Return Average: -1.70%
After this recent run up we've seen in the markets, I expect a pullback. However, I regard this as a buying opportunity.
Compiled by Franklin Cameron, BNN Market Call Tonight