Mike Philbrick, CEO, ReSolve Asset Management
Focus: ETFs
Top Picks: BMO Equal Weight Utilities Index ETF, iShares MSCI Global Silver and Metals Miners ETF, iShares S&P/TSX Completion Index ETF
MARKET OUTLOOK:
The market is undergoing an important transition: artificial intelligence (AI) is moving from a digital story to a physical infrastructure story.
The first phase of the AI bull market rewarded semiconductors, hyperscalers, and software. But the next phase is much more capital intensive. AI requires data centers, electricity, transformers, cooling systems, copper wiring, and grid upgrades. That means the beneficiaries may increasingly shift toward utilities, industrials, infrastructure, and real assets tied to electrification and physical buildout.
At the same time, nominal growth appears to be reaccelerating. Fiscal deficits remain large globally, labor markets are stabilizing, and AI-related capital spending continues to expand aggressively. Unlike past software cycles, this buildout collides directly with real-world constraints including energy availability, supply chains, labor, and materials, which may keep inflation structurally stickier than investors expect.
That could also lead to broader market leadership beyond a handful of U.S. mega-cap growth stocks. Historically, environments with firmer nominal growth and higher capital spending have favored cyclicals, mid-caps, infrastructure, commodities, and real assets over the most crowded long-duration trades. This doesn’t mean the AI story is ending. It may simply mean the market is entering the next phase, where the picks-and-shovels required to power AI become just as important as the software itself.
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TOP PICKS:
BMO Equal Weight Utilities Index ETF (ZUT TSX)
ZUT provides exposure to a diversified basket of Canadian utility companies involved in electricity generation, transmission, and distribution. The ETF uses an equal-weight structure, which reduces concentration in any single utility name and provides broad exposure to Canada’s power and infrastructure sector.
Theme: AI power demand and grid infrastructure
Why now
The first phase of the AI boom rewarded semiconductors, hyperscalers, and software. The next phase may increasingly reward the companies responsible for powering that infrastructure. Data centers, cloud computing, electrification, and industrial automation all require enormous amounts of electricity, transmission capacity, and grid investment.
Utilities are also interesting because they offer a more defensive way to participate in the AI buildout compared to higher-volatility semiconductor and momentum-driven technology names.
Why it can be sustainable
Unlike previous software-led cycles, AI expansion collides directly with real-world bottlenecks including power generation, grid reliability, and transmission infrastructure. Those constraints are likely to require years of investment and modernization.
Portfolio takeaway
ZUT can serve as a diversified infrastructure and defensive-growth allocation within a portfolio. It offers exposure to the long-term electrification theme while potentially helping reduce portfolio volatility relative to more concentrated AI trades.
iShares MSCI Global Silver and Metals Miners ETF (SLVP NYSE)
SLVP provides exposure to global silver mining companies through an ETF structure that includes producers and miners involved in silver and precious metals extraction. Rather than owning physical silver directly, investors gain equity exposure to companies whose revenues and profitability are tied to silver prices and production growth.
Theme: Industrial demand meets monetary scarcity
Why now
Silver is unique because it functions as both an industrial metal and a monetary metal. The AI and electrification buildout is highly materials intensive, and silver plays an important role in solar technology, electronics, industrial applications, and advanced electrical systems.
At the same time, persistent fiscal deficits, rising nominal growth, and structurally higher capital spending may continue to support investor interest in scarce real assets.
Why it can be sustainable
Unlike many traditional commodity cycles, the current infrastructure buildout may require years of elevated investment in power systems, industrial capacity, and digital infrastructure. Silver benefits both from industrial demand growth and from its role as a hard asset during periods of inflation uncertainty.
Portfolio takeaway
SLVP is best viewed as a satellite real-asset allocation within a diversified portfolio. Silver miners can be volatile, but they may provide differentiated return drivers tied to electrification, industrial growth, and real asset scarcity.
iShares S&P/TSX Completion Index ETF (XMD TSX)
XMD provides exposure to Canadian mid-cap equities across a broad range of sectors including industrials, financials, consumer businesses, materials, and domestic cyclicals. The ETF complements traditional large-cap Canadian exposure by focusing on companies outside the largest names in the TSX 60.
Theme: Broader market leadership and cyclical participation
Why now
Market leadership has been heavily concentrated in a small group of U.S. mega-cap technology companies for several years. If the market broadens into a more cyclical and infrastructure-driven environment, mid-cap companies tied to industrial activity, domestic growth, and capital spending may begin to participate more meaningfully.
Why it can be sustainable
The next phase of economic expansion may be less dependent on purely digital growth and more connected to physical infrastructure, industrial investment, and domestic economic activity. Canadian mid-caps can provide diversified exposure to those trends while reducing reliance on a narrow group of global technology leaders.
Portfolio takeaway
XMD can work as a portfolio diversifier for investors looking to broaden exposure beyond large-cap equities. It offers participation in Canadian economic activity and cyclical growth while complementing core large-cap equity allocations.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ZUT TSX | N | N | N |
| SLVP NYSE | N | N | N |
| XMD TSX | N | N | Y |
PAST PICKS: AUG. 29, 2025
iShares Silver Bullion ETF (SVR TSX)
Then: $18.94
Now: $34.40
Return: 82%
Total Return: 82%
3iQ Solana Staking ETF (SOLQ TSX)
Then: $22.20
Now: $9.28
Return: -58%
Total Return: -58%
iShares U.S. Small Cap Index ETF (XSU TSX)
Then: $44.84
Now: $54.49
Return: 22%
Total Return: 22%
Total Return Average: 15%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SVR TSX | N | N | Y |
| SOLQ TSX | N | N | Y |
| XSU TSX | N | N | N |
