Stan Wong’s Top Picks for April 6, 2026

Stan Wong, Portfolio Manager, Scotia Wealth Management

Focus: North American large caps and Exchange-traded funds (ETFs)

Top Picks: Taiwan Semiconductor, Global X U.S. Electrification ETF, BHP Group

MARKET OUTLOOK:

Equity markets continue to navigate a backdrop of geopolitical tensions, resilient economic growth, and structural shifts in global supply chains. With the S&P 500 having experienced a drawdown of as much as nine per cent from its January high, and oil prices above US$100 per barrel, recent volatility has understandably kept investor attention focused on geopolitical developments and their market impact. Still, history suggests that while such events can unsettle markets in the near term, they have rarely had lasting effects on long-term investment outcomes. For prudent investors, periods of uncertainty have often created opportunities to add selectively to high-quality businesses at more attractive valuations.

Against that backdrop, the broader economic and corporate picture remains constructive. Recent U.S. data continues to reflect resilience, with consumer spending firm and corporate balance sheets healthy. Market leadership is also broadening beyond mega-cap technology, with stronger participation across industrials, financials, energy, and select cyclical sectors. Corporate fundamentals remain supportive, with earnings-per-share growth forecasts of more than 15 per cent in both 2026 and 2027, driven by continued investment in artificial intelligence, digital infrastructure, electrification, and domestic manufacturing and supply-chain realignment.

At the same time, geopolitical and trade-related developments are reshaping investment priorities. Supply-chain security concerns and shifting trade dynamics are accelerating near-shoring and onshoring, particularly across North America, while supporting a broader capital spending cycle tied to AI infrastructure, electrification, and supply-chain realignment. Meanwhile, over US$7.8 trillion in money-market assets represents a significant pool of capital that could gradually rotate back into risk assets over time.

At The Stan Wong Group, we focus on high-quality large-cap equities, emphasizing durable cash flow, competitive advantages, and sustainable earnings growth within portfolios aligned with each client’s broader total wealth plan.

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TOP PICKS:

Taiwan Semiconductor (TSM NYSE)

Taiwan Semiconductor Manufacturing Company is the world’s leading semiconductor foundry and one of the most important enablers of the global technology ecosystem, with expected 2026 revenue of approximately US$155 billion. The company manufactures advanced chips used in artificial intelligence, high-performance computing, smartphones, and a wide range of digital applications for major customers including Apple, Nvidia, AMD, and Qualcomm. TSM produces more than 90 per cent of the world’s most advanced semiconductors, making it a critical supplier to many of the world’s leading technology companies.

TSM is at the forefront of advanced chip manufacturing, including leading-edge three-nanometre production, with two-nanometre technology expected to drive the next phase of growth. Its scale, engineering expertise, and capital intensity create exceptionally high barriers to entry, reinforcing its competitive position and long-term demand visibility.

TSM is also a major beneficiary of planned hyperscaler capital spending, as the world’s largest cloud and technology companies continue to commit heavily to AI infrastructure and advanced computing. As that investment accelerates, demand for advanced semiconductors and high-performance computing should remain strong, placing TSM at the centre of a powerful secular growth trend.

From a long-term perspective, TSM offers exposure to a critical part of the digital economy and the growing need for advanced semiconductors. In the near term, continued demand for AI-related chips, capacity expansion, and the shift to next-generation process technology should support the story. An average annual earnings growth forecast of more than 25 per cent over the next several years further reinforces the company’s attractive outlook.

Global X U.S. Electrification ETF (ZAP NYSE)

The Global X U.S. Electrification ETF (ZAP) provides targeted exposure to companies positioned to benefit from the expansion and modernization of the U.S. power grid, spanning electricity generation, transmission infrastructure, and industrial electrification. Top holdings include Quanta Services, NextEra Energy, and Consolidated Edison, giving investors exposure to companies that stand to benefit from rising electricity demand and the need for greater grid capacity.

We view ZAP as a direct beneficiary of rising electricity demand. After two decades of near-stagnant growth, U.S. electricity demand is projected to increase by nearly 50 per cent through 2040, driven by the expansion of AI data centres, domestic manufacturing, and electric vehicle adoption.

The ETF offers a blend of utilities and industrials, with about three-quarters of the portfolio in utilities and the balance in industrials. This gives investors exposure both to regulated power providers and to the industrial and infrastructure companies helping expand and modernize the grid. Importantly, this is not simply a traditional defensive utility story. Rising electricity demand, grid modernization, and AI-related infrastructure investment are helping create a more attractive growth outlook for many utility and power-related companies.

Long-term, ZAP offers exposure to a durable, multi-year investment theme tied to power infrastructure and electrification. In the near term, accelerating capital expenditures linked to AI infrastructure, grid expansion, and domestic industrial investment provide support for the story. The ETF carries an expense ratio of 0.50 per cent.

BHP Group (BHP NYSE)

BHP is one of the world’s largest diversified mining companies, with major exposure to commodities that are essential to global industrial activity, including iron ore, copper, and metallurgical coal. We view BHP as a beneficiary of several powerful long-term trends, particularly electrification, infrastructure investment, and the expansion of AI-related power and data-centre capacity.

Copper is increasingly central to the investment thesis. Global copper demand is forecast to increase by around 70 per cent by 2050, underscoring how important the metal has become to electrification, renewable energy, electric vehicles, and data-centre growth. At the same time, iron ore remains a major source of cash flow and resilience for BHP, supported by seaborne demand that is expected to remain near current high levels over the next few years.

This balance is a key part of the investment case. BHP offers exposure not only to copper-driven growth, but also to the scale, stability, and cash generation of its iron ore business. In our view, that supports disciplined capital allocation, shareholder returns, and continued investment in commodities tied to rising global demand.

From a long-term perspective, BHP offers exposure to global growth and the materials needed to support electrification and infrastructure buildout. In the near term, improving manufacturing sentiment, signs of stabilization in China’s policy backdrop, and continued strength in copper markets provide support for the story. From a technical perspective, the shares have also shown improving momentum, recently breaking above key long-term resistance levels. The shares also offer an attractive dividend yield of about four per cent.

PAST PICKS: APRIL 10, 2025

Apple (AAPL NASD)

Then: US$190.42

Now: US$260.82

Return: 37%

Total Return: 37%

Expedia (EXPE NASD)

Then: US$149.52

Now: US$225.74

Return: 51%

Total Return: 52%

Invesco S&P 500 Equal Weight Index ETF (EQL TSX)

Then: $33.88

Now: $40.76

Return: 20%

Total Return: 22%

Total Return Average: 37%