Richard Orrell's top ETF picks for Jan. 29, 2026

Richard Orrell highlights three exchange-traded funds amid a 'goldilocks' start to 2026 with contained volatility, and he flags labour-market developments and credit spreads as key risks.

The start of 2026 is described as a 'goldilocks' market where conditions are neither too hot nor too cold, supporting small-cap strength and contained volatility. Earnings season has seen many firms exceed modest expectations, while geopolitical headlines still create sensitivity in markets. Richard Orrell presents three ETF selections in this context and explains the economic drivers and risks that inform his views. Highlights: - Market environment: Early 2026 is called a 'goldilocks' period with modestly beat earnings and relatively stable volatility as measured by the VIX. - Economic drivers: The article notes a rewiring of trade relationships, citing recent deals such as Canada-China and EU-India, and characterizes the macro backdrop as favorable. - Key risks: Labour-market developments and any uptick in layoff announcements are highlighted, and widening credit spreads are described as an early indicator of liquidity stress. - U.S. equity fund: The article describes a fund that screens for high return on equity, stable year-over-year earnings growth, and low financial leverage, with issuer weights capped at 5%; the author favors a hedged version due to U.S. dollar concerns and the article mentions large holdings including Meta, Eli Lilly, Google and Nvidia. - Franklin International Low Volatility High Dividend Index ETF (FLVI): The article says this ETF targets high dividends and low volatility outside North America, had attracted about $177 million since its March 2024 debut, returned 33.72% in the year to 12/31/2025, shows a trailing P/E of 13.73, and currently has a discounted management fee through June 30, 2026 with all-in expenses reported around 0.61%. - Global X S&P/TSX 60 Covered Call ETF (CNCC TSX): The article describes this ETF as holding the largest 60 Canadian companies, offering a covered-call income strategy with monthly distributions reported around 7.5%, and providing exposure to Canadian banks, energy, and materials sectors. Summary: Orrell's selections reflect a mix of U.S. quality exposure, international dividend and low-volatility stocks, and a Canadian covered-call income strategy, presented against a broadly constructive early-2026 market view that still notes labour-market and credit-spread risks. Undetermined at this time.