David Cockfield.
David Cockfield is managing director and portfolio manager of Northland Wealth Management. His focus is on Canadian equities.
Top picks:
iShares S&P/TSX Capped Energy Index Fund
This exchange traded fund seeks to replicate the performance of the S&P/TSX Capped Energy Index. The fund is focused on Canadian large cap oil and gas companies with the top 13 holdings making up 73% of the portfolio. Suncor and CNQ the top two holdings make up 32% of the portfolio. The rest of the 52 holdings include a number of intermediate or junior companies. The management fee is 0.55%. Last purchased in May, 2014 @ $19.58.
TransCanada Corp.
TransCanada Corp. operates one of the largest natural gas pipeline systems in North America. Recent results have been very good and low natural gas storage levels in the U.S. will support strong demand for natural gas into 2015. Longer term, the potential for exports of liquid natural gas offers a profitable opportunity for the company. Markets have discounted any approval of Keystone XL Pipeline so any approval would be a bonus. The equity yields a reasonable 3.9%. Last purchased in May, 2014 @ $51.07.
BMO Low Volatility Canadian Equity ETF
This exchange traded fund provides investors participation in 40 low beta (less volatile) larger capitalization Canadian equities. The top 10 holdings include retail, utilities and financial stocks. The beta of the present portfolio is 0.71 and the yield is 2.8%. The management fee is low at 0.35%. The portfolio is not static and is rebalanced in June and reconstituted in December. Last purchased in May, 2014 @ $21.97.
Past picks: June 7, 2013
BMO Low Volatility Canadian Equity ETF
Then: $18.83; Now: $21.79 +15.72%; Total return: +18.38%
BMO Covered Call Utilities ETF
Then: $14.54; Now: $15.54 +6.88%; Total return: +13.53%
Vanguard Dividend Appreciation ETF
Then: $68.13; Now: $76.57 +12.39%; Total return: +14.67%
Total return average: +15.53%
Disclosure: | Personal | Family | Portfolio/Fund |
ZLB | N | N | Y |
ZWU | N | N | Y |
VIG | N | N | Y |
Market outlook:
Equity markets in North America continue to edge upward despite the problems in the Ukraine and no shortage of bearish comments in the press. The beginning of Fed tapering has proved to be a non-event as interest rates have actually fallen after the event. While a market correction seems long overdue, unless some event can significantly shake investor confidence, markets will continue to rise.