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bnn market call

John Hood.

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

Top Picks:

Questrade Russell U.S. Mid-Cap Value Index ETF Hedged to CAD (QMV.TO)
This is the only Canadian mid-cap with a U.S. dollar hedge. This and the Questrade Russell U.S. Midcap Growth Index ETF Hedged to CAD (QMG.TO) both a growth & value. This ETF is based upon the Russell 1000 subject to Questrade's rules based/active management methodology.

SPDR S&P Mid-Cap 400 ETF (MDY)
This is the classic mid-cap based upon the S&P400. Low cost at .25.

Vanguard Mid-Cap ETF (VO)
This ETF is based upon the CPSP model which Vanguard adopted on some ETFs in 2012. Cost at .09.

Past Picks: September 2, 2014

Vanguard Large-Cap ETF (VV.N)
I hold VV for growth in the U.S. market.
Then: $92.30 Now: $89.27 -3.28% Total return: -1.45%

BMO U.S. High Dividend Covered Call ETF (ZWH.TO)
I hold the ZWH for tax-advantaged income.
Then: $16.01 Now: $18.20 +13.68% Total return: +20.35%

iShares Core S&P/TSX Composite High Dividend Index ETF (XEI.TO)
I continue to hold XEI but as a dividend fund, it held oil shares and therefore declined.
Then: $24.03 Now: $18.28 -23.93% Total return: -19.96%

Total Return Average: -0.35%

Market outlook:
With U.S. unemployment numbers suggesting normal "full employment" and a continuing recovery in housing and business, I remain bullish on U.S. markets but would "buy on the dips." I am not rushing headlong into anything. This has been in many ways a large cap stock market and I believe that the often overlooked mid-caps should do well also. Regarding Canada, I had sold 1/3 of my long held iShares S&P/TSX 60 Index ETF before the correction last month but since the U.S. dropped as well, I took that as an opportunity to buy iShares Core S&P 500 Index ETF. I am not in emerging markets or Chinese stocks at all, and have limited European holdings of about five per cent.