Looking for investing ideas? Here’s your weekly digest of the Globe’s latest insights and analysis from the pros, stock tips, portfolio strategies plus what investors need to know for the week ahead.
Gordon Pape: My ETF Global Portfolio has soared to new heights, gaining more than 20% over the past six months
The markets continued to rebound from the crash of a year ago, and the result was another big gain for our ETF Global Portfolio, Gordon Pape writes. It was specifically designed to provide global exposure for growth-oriented accounts, and does this through 100-per-cent exposure to domestic and international exchange-traded funds. That means you should only track this portfolio if you are willing to accept stock-market risk, although the use of ETFs provides a high degree of diversification.
Here’s a look at how each ETF in the portfolio has performed since the last update in late October, whether any components are changing and why it’s holding cash in a Motive Financial savings account.
Rob Carrick’s 2021 ETF Buyer’s Guide: Best International and global equity funds
Finally, a reward for adding stocks from outside North America to your portfolio, Rob Carrick writes. As you’ll see in the latest instalment of the 2021 Globe and Mail ETF Buyer’s Guide, returns in the past year for international and global equity funds were uncharacteristically excellent. The average 12-month return clocked in at just over 18 per cent.
All funds presented here are core funds, which means they’re suitable as your one and only international or global fund. A quick word about terminology: International is a term that refers to markets outside North America, while global funds hold stocks from the United States and elsewhere (including Canada, in some cases).
More from Rob Carrick: The 50 ways to build an instant ETF portfolio with one single purchase
Investors endure ‘the worst kind’ of market selloff
Michael Batnick, director of research at New York-based Ritholtz Wealth management, has posted “The Worst Kind of Selloff,” Scott Barlow writes about a piece on the pain of market rotations that he wishes he’d penned himself.
“It’s never fun to see your portfolio lose value, but some times are more painful than others … The S&P 500 is only 2% off its all-time high, but some names are getting absolutely torpedoed … What I’m about to say won’t take away the pain if you’re heavily invested in these growth names, but maybe you can use some context. Every big winner gets crushed from time to time. … Take a look at Apple. It’s one of if not the greatest stocks of all-time. It got cut in half 6 times.” Read more of Barlow’s top links here or go directly to Batnick’s full story here.
More from Scott Barlow: For Canadian REITs, “a glimpse into a post-pandemic world” from CIBC
‘It’s a broken system’: Investors face regulatory nightmare after advisers’ moves trigger big losses
Advocates have long criticized the Canadian securities industry’s complaint-handling system as tilted heavily against the everyday investor, Tim Shufelt writes. Aggrieved investors must escalate a complaint through multiple levels, starting with the adviser’s employer. From there, some firms and banks will divert a complainant to an internal “ombudsman.” If still unresolved, the Ombudsman for Banking Services and Investments (OBSI) can conduct an independent investigation and recommend compensation.
But OBSI is a toothless watchdog, relying on voluntary co-operation by dealer firms. It cannot force dealers to disclose documents and its decisions are non-binding. Sometimes, firms will simply refuse to compensate clients that OBSI concludes were harmed by unsuitable investments, discretionary trading and other dubious practices. Other times, investment firms will make an offer to settle for a fraction of their client’s losses. Read more here.
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Don’t let rising rates derail your dividend plan
You’ve heard it a million times: When interest rates rise, dividend stocks drop, John Heinzl writes. But Brian Belski, chief investment strategist with BMO Capital Markets, has come to a different conclusion after examining 30 years’ worth of data: Even as some dividend stocks struggle when rates are rising, companies that regularly raise their dividends have historically outperformed the market during such periods.
In a research note this month, he analyzed the seven periods since 1990 when the 10-year U.S. Treasury yield rose for a year or longer. In all but two of those instances, dividend growth stocks posted total returns greater than the S&P 500 index. His analysis is timely now that government bond yields have surged amid expectations that a strong postpandemic economic recovery could fuel inflation. Read more here.
More from John Heinzl: George Weston, Rite Aid and more investing stars and dogs for the week
What investors need to know for the week ahead
In the week ahead, markets will be closed in Canada, the United States and Europe for Good Friday. Companies releasing their latest financial results this coming week include BlackBerry, Lululemon Athletica, Carnival, Park Lawn, Dollarama and Walgreens Boots Alliance.
Economic data on tap include: Canadian monthly real GDP for January, Canada’s industrial product and raw materials price indexes plus U.S. pending home sales for February (Wednesday); Canadian building permits and U.S. construction permits for February, as well as Canadian auto sales for March (Thursday).