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BNN Market Call

3 top ETF picks from Burgeonvest's John DeGoey Add to ...

John DeGoey is vice-president and associate portfolio manager at Burgeonvest Bick Securities. His focus is on personal finance and ETFs.

Top picks:

iShares Emerging Market Minimum Volatility ETF
iShares U.S. Minimum Volatility ETF
iShares International (EAFE) Minimum

All three products were launched only about five weeks ago. These recommendations made in the hope of getting increased exposure to major international geographical segments (frequently under-represented) in a way that keeps volatility down. Many people tell me that they would like to invest in equities, but are concerned that volatility will be too much for them to stomach. I don’t think volatility has been that bad in 2012 and I have no opinion whether things will be better or worse going forward, but these ETFs from Blackrock respond to that sentiment.

Past picks: Sept. 1, 2011

iShares Russell 2000 Index Fund
Then: $15.48
Now: $17.56
Total return: +15.07 per cent

BMO International Equity ETF
Then: $14.99
Now: $13.34
Total return: +6.9 per cent

iShares BRIC ETF
Then: $28.36
Now: $22.61
Total return: –17.89 per cent

Total return average: +1.36 per cent

Market outlook
I have no forecast regarding what the market might do in the future. Owing to my belief in a high degree of market efficiency, I continue to hold that no one can reliably forecast market moves or time the changes in market sentiment. My view is that people who purport to be able to do so are severely overstating their analytical abilities. The recommendations made here are done in the spirit of getting investors to build broadly diversified portfolios using asset classes that are likely to be underrepresented. The recommendations are designed to increase the likelihood of investors being able to stay the course if markets become volatile.

Watch Mr. DeGoey on BNN.

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