It's a dangerous time to be investing in the markets right now. The Dow Jones is sitting near all-time highs and many stocks are as expensive as they've ever been.
Finding deals is not nearly as easy as it was earlier in the year when the markets were concerned about things other than the coronavirus pandemic.
But the stock market is on borrowed time as job losses continue to mount and a crash could be imminent. That's why now could be a great time to look for a safe place to put your money into.
One great option could be the BMO Low Volatility Canadian Equity ETF (TSX:ZLB). As its name suggests, this isn't a very volatile fund, averaging a beta of just 0.72. It has excellent diversification with stocks from the financial services industry making up less than 22% of its total holdings, followed by utilities at 16% and consumer defensive at another 16%. Tech stocks, which are extremely expensive these days, account for just 4% of the fund's total weight.
Gold stock Franco-Nevada (TSX:FNV)(NYSE:FNV) and utility stock Hydro One (TSX:H) are the only two holdings that make up more than 4% of the fund's total assets. The ETF isn't full of exciting stocks in its portfolio but that's also what makes it a relatively safe buy.
Utility stocks and defensive stocks are normally safe places to invest in over the long term, and they can provide great stability when the markets aren't doing well.
The fund pays a yield of 2.7% and its net expense ratio of 0.35% is very modest.
If you're after stability and a good payout, this ETF could be one of the better options out there for you today.
