Global markets keep climbing despite geopolitical tension, shifting rate expectations, and nonstop headlines—but how should you actually build an ETF portfolio in this environment? According to Ryan Lewenza, Senior Portfolio Manager, Private Client Group from Turner Investments, it all comes back to one thing: earnings. Strong revenue growth, record profit margins, and resilient fundamentals are what continue to power equities higher, even as uncertainty lingers.
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VTV — Vanguard Value ETF US Equities — Large-cap value
One of the biggest value funds in the US, with the Vanguard fee advantage and heavy exposure to the sectors growth investors have abandoned.
- Loaded with financials, energy, and industrials — the exact sectors trading at a discount while tech trades at a premium. If value outperforms over the next five years, this is your vehicle.
- Vanguard’s fee structure is among the lowest available, keeping the drag minimal on a long-duration hold. Lewenza’s firm has owned it for some time and sees the thesis building.
- Intel is currently the top performer inside the fund — up over 100% — and will likely be trimmed at the next rebalance, a feature not a bug. The ETF naturally recycles winners and reloads on cheap names.
ZXLU — BMO S&P US Utilities Index ETF Utilities — AI power infrastructure play
Not just a defensive utilities trade — a backdoor bet on the hundreds of data centers being built across the US to power the AI boom.
- US utilities face a structural energy shortage driven by AI data center demand. US hyperscalers just raised their capex guidance from ~$600B to north of $1 trillion — that power has to come from somewhere.
- Available in both CAD and USD via the BMO/SPDR partnership — buy the Canadian dollar-hedged version if you think the loonie is near a bottom and want to avoid currency drag on US exposure.
- Canadian utilities won’t give you the same AI infrastructure exposure — the US is where data centers are being built at scale. This is the right geographic expression of the theme.
FLKR — Franklin FTSE South Korea ETF Emerging Markets — AI semiconductors & memory
Up 251% from the lows — and Lewenza still has half his position on. When AI capex keeps rising every quarter, the memory and chip demand story isn’t over.
- Top two holdings are Samsung and SK Hynix — the dominant global suppliers of HBM memory chips that every AI data center requires. These aren’t speculative bets; they’re picks and shovels for the AI buildout.
- South Korea was the best performing developed market last year. The trade started at a price-to-book below 1 — theoretically you could buy the market, liquidate the companies, and profit. That deep value entry point created the runway for the run.
- Exit triggers are clear: valuation expansion getting stretched, or a technical breakdown below the 50 and 200-day moving averages. Until then, the trend is intact and AI capex keeps rising quarter after quarter.
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