Category Archives: ETF Insight Articles

Decidedly Neutral … (TWTW – Apr 10-14, 2017)

Decidedly Neutral ... the Bank of Canada's statement maintaining rates unchanged while reflecting on recent stronger economic data that saw Governor Poloz take the rate cut possibility raised in January off the table ... On another front, marijuana captured quite a few headlines as Canada looks poised to be the first G7 nation legalizing it ......

Two Weeks Away (TWTW – Apr 3-7, 2017)

Two Weeks Away - The French Presidential Elections ... Hopefully not about to serve us another dose of either BREXIT or Make America Great Again a la Trump ... For if it did ... all bets would be off as far as stable markets ... A Marine Le Pen Presidente would put an end to the...

Suspended Reality … (Perspectives – April 2017)

Suspended Reality ... US Rates are headed higher; while elsewhere looking set to continue on their low or non-existent trajectory for longer still, yet the USD bullish stance of market participants has generally disappeared. US equities are consensus-wise considered pricey, the Eurozone just entered the twilight zone of post article 50 delivery uncertainty, as Britain's...

Brexit = Scots Out? (TWTW – Mar 27-31, 2017)

Brexit = Scots Out? With British PM Theresa May delivering the "letter" triggering article 50 of the Lisbon Treaty - the natural question is: What's next? Other than an anticipated painful 2 years of negotiations between the EU and the UK? In the meantime, will the UK itself face an existentialist moment as it faces possibly...

Voter Feelings … (TWTW – Mar 20-24, 2017)

Voter Feelings ... Thus did Canadian Finance Minister Bill Morneau explain the justification for deficits, while delivering the Trudeau Government's second annual budget - one described by pundits as a "waiting for Trump" kind of budget... The fact that Russia is according to Bloomberg battening down the hatches in anticipation of USD 40/barrel isn't - if...

Inglis – the Longevity challenge …

We are living longer. Advances in health care, improvements in diet and enhanced fitness programs have contributed to increased life expectancy, with the current life expectancy in Canada at 81.24 years. It is projected to rise further. According to TD, men born in 1931 have a 2.5% chance of reaching 100 and women 5.1%.  Fast forward...

Escott: Time to Revisit European Equities

As with all investment decisions, your timeframe for comparing investments makes all the difference. European equities are a good example of this: in certain cases they look fairly valued, while under other scenarios they appear very attractive.  The performance of the large European equity markets such as the UK and Germany has been in-line with...

Feds Creds (TWTW – Mar 13-17, 2017)

Feds Creds - Annnnd the FED unsurprisingly hiked Fed Funds by 25 bps this past week. What seems to be the most significant shift in general sentiment, is that now, market participants are actually believing the FED when it comes to the "program". By the program, we are talking...

Mid-Mar 2017 CDN ETFs: AUM update – Onward and Upward …

Aggregate CDN ETFs AUM is estimated to have risen a further $2.1 Billion or so since Feb 28, to Mar 15, 2017, reaching CAD 122.3 Billion in the process. The breakdown between net new issuance and further market gains is about 55% net new, and 45% markets. Net inflows went primarily to BMO (+$548MM); Vanguard (+$180MM); RBC...

FP – Dividend ETFs drive growth in Smart Beta Sector

Yields have been on an upward march since Donald Trump’s election, and with a likely hike to the Fed funds rate coming in March, that trajectory is expected to continue. Relatively speaking, however, yields remain generally paltry in the world of bonds. It is no surprise then to find that dividend ETFs have been at the forefront...

$3.2 T (TWTW – Feb 27-Mar 3, 2017)

$3.2 Trillion - The gains in U.S. share values since Trump's election ... as tweeted by the Tweeter in Chief himself #takingcreditfor, Donald Trump. As for the Donald's address to Congress - labelled as featuring a far more tempered tone (good) but also little new of substance (not so good) ... which didn't prevent markets to shoot...

Performance highlights February 2017 – Tier I and II: “Thanks Mr. Marke … Mr Trump”?

From worrying about China and Energy a year ago ... Markets now continue to move higher on expectations of regulatory relief, upwardly mobile economic growth, and tax cuts/capital repatriation from overseas, courtesy Mr. Donald Trump's White House. The top and bottom performing ETFs for February, and year-to-date, for iShares; BMO ETFs; Vanguard, and Horizons are shown...

Listen to Warren (Monthly Perspectives – March 2017)

Listen to Warren - Praising Vanguard's Founder Jack Bogle in Berkshire's latest annual report: "If a statue is ever erected to honor the person who has done the most for American investors, the handsdown choice should be Jack Bogle. For decades, Jack has urged investors to invest in ultra-low-cost index funds. In his crusade, he amassed...

Earnings, Earnings (TWTW – Feb 20-24, 2017)

Earnings, Earnings  - From Glencore to RBC to Magna, earnings spell better days. Market participants need continued strength on that front to validate current record levels ... absent which, watch out! The chart contrasting the price of crude oil with the action in Canadian energy stocks - posted recently on LinkedIn by former RBC Strategist Myles Zyblock...

iShares RAFI ETFs migrating to NEO Exchange today/tomorrow

A reminder that BlackRock Canada anticipates that the Units (earlier announced: CIE; CIE.A; CJP; CJP.A; CLU; CLU.A; CLU.B; CLU.C; CWO; CWO.A; CRQ; CRQ.A) will be delisted from the TSX at the close of trading on February 21, 2017 and will be listed on NEO at the open of trading on February 22, 2017. BlackRock Canada has...

Strong RRSP related (?) inflows, Continued Melt-up in markets = record AUM

Strong Net inflows combined with further market gains look to have taken ETF Industry Assets to CAD 119.5 Billion, or an aggregate increase of CAD 3.8 Billion as at Mid-February 2017. With Desjardins announcing their imminent arrival on the scene, and AGF launching their own ETFs recently, the ranks of providers currently stands at 20. Net Inflows...

Arrivée Desjardins – Facteurs multiples et FNB obligataires + Privilegiées = ?

Desjardins Wealth Management recently filed for their launch of a total of 9 ETFs, covering multi-factors strategies, as well as fixed income and preferred shares: => View Prospectus =>Click HERE!

Desjardins Canada Multifactor-Controlled Volatility ETF(“DFC”)

Desjardins USA Multifactor-Controlled Volatility ETF (“DFU”)

Desjardins Developed ex-USA ex-Canada Multifactor-Controlled Volatility ETF (“DFD”)

more

Light Hearted (TWTW – Feb 6-10, 2017)

Light Hearted - How some described Trump Advisor Kellyanne Conway's plug for Ivanka Trump's fashion line, as she urged Americans to go buy it on TV last Thursday... Of course, at the other end of this, the Donald was going all out on TWITTER to vilify Nordstrom, which had abandoned his daughter's line as it wasn't...

A look to the South of us – ETF.com ‘s 2016 Finalists for ETF of the Year

As ETFs continue to make significant gains - with significantly more growth potential ahead here in 2017 - relative to their Mutual Funds counterparts, it is important on the innovation front, to remember that ETFs have moved beyond their original "index delivery" mission, to ultimately a distribution mechanism suitable and capable of delivering myriads investment...

Peak Uncertainty (TWTW – Jan 16-20, 2017)

Peak Uncertainty - Thus did Billionaire George Soros describe this point in history in a Bloomberg interview at the World Economic Forum in Davis, Switzerland. This, with Friday's inauguration of Donald J Trump as 45th President of the United States. The Donald, of course, himself a Billionaire - though of the populist persuasion ... And now,...

Trump Boost – Rethink? (TWTW – Jan 9-13, 2017)

Trump Boost - Rethink? With the Inauguration of President Elect Donald J Trump on the immediate horizon (Jan 20th), market participants have - prompted in part by the Donald's continued tweeting - begun reappraising the gains scored since his early November election as 45th President of the United States. World of Post Truth Truth ... Here...

2016 winners and losers (Tier 2 Providers)

In terms of top and bottom Tier II ETFs for both 2016, and for December, please check out the tables below, which can help you spot performance trends, trend reversals, or possibly relative opportunities. PowerShares - Top and Bottom Performing ETFs (2016):
PowerShares 1-Month 3-Month 6-Month YTD 1-Year 2-Year 3-Year 5-Year
PXC 0.70% 8.20% 14.58% 29.94% 29.94% 7.56% 7.30%
PZC 2.57% 3.45% 7.69% 26.85% 26.85%
PDC 3.57% 5.48% 10.46% 23.27% 23.27% 5.93% 7.79% 11.47%
PXS.U 2.08% 7.15% 11.24% 16.69% 16.69%
PXU 2.04% 7.03% 11.06% 15.88% 15.88% 5.53% 7.72%
TLV 2.18% 2.27% 4.67% 15.41% 15.41% 7.48% 10.26%
PZW.U 2.45% 3.71% 12.36% 14.94% 14.94%
PFH 1.45% 0.58% 4.29% 12.98% 12.98% 4.75% 4.20% 5.22%
PXS 1.82% 9.34% 14.88% 12.69% 12.69%
PXG.U 2.68% 4.68% 10.85% 12.67% 12.67%
QQC 1.04% -0.07% 10.49% 6.50% 6.50% 7.57% 11.41% 17.33%
PLV 1.20% 0.28% 2.26% 5.81% 5.81%
PTB -0.36% -3.32% -1.21% 2.96% 2.96% 2.59% 4.30%
USB.U 0.18% -0.63% -0.25% 2.53% 2.53% 1.87%
PSB -0.06% -0.40% 0.42% 2.14% 2.14% 2.28% 2.73% 2.78%
ELV -0.46% -4.72% -1.27% 1.19% 1.19% -0.94%
PGL -1.57% -8.54% -6.64% 1.08% 1.08% 2.75% 7.51% 3.52%
PFL 0.07% 0.19% 0.46% 0.95% 0.95% 0.68%
ILV 0.87% -3.85% 0.43% -0.85% -0.85% 6.44%
USB -0.09% 1.36% 2.87% -1.19% -1.19% 9.51%
etfinsight Dec-16
Highlights:
  • RAFI outperformed not just in Canada, but in the US as well,...

And 2016’s Winners were … (Tier 1 Providers)

No, I don't want to take you back to early 2016 ... After all, the first 5-6 weeks of 2016 came as a bit of a shocker to market participants overall - and the way things seemed to be headed, it looked like it had the makings of getting considerably worse. Anyways, as we all know...

Positive Reset (TWTW – Dec 12-16, 2016)

Positive Reset - The words used by JPMorgan's CEO Jamie Dimon when looking at the potential effect of a Trump Administration going forward. Be it as it may from a potential perspective, let's not forget banks being an obvious beneficiary of either a regulatory rollback, or reg light(er), respectively reflation ... Elsewhere, unless some of the...

Divergence? (TWTW – Dec 5-9, 2016)

Divergence? With the US FED set to raise a further 25 bps on Wednesday, a full year after their first "normalization" hike, all eyes will turn to 2017 as far as what to expect in terms of the pace of hikes in the context of a potential pick up in growth, and - possibly more...

November & YTD performance Highlights: A rejuvenated Bull?

The "against all-odds" or rather anti-establishment election of Donald Trump to the presidency of the United States earlier this month reshaped the investment landscape, notably favoring financials, infrastructure, and generally cyclicals. Add to it the last minute OPEC accord on November 30, 2016, and the month's league of top and bottom performers likely took some...

The Great Rotation … (TWTW – Nov 21-25, 2016)

The Great Rotation ... Who would have thought: In a post Trump Presidential election victory world, the Donald is the new Ronald! Instead of the markets getting hit by a 5-10% downside, we're seeing all times high across the Dow, NASDAQ, the S&P, and the Russell. And with stocks taking flight and bonds getting pounded, money...

2017 on the Horizon (TWTW – Nov 14-18, 2016)

2017 on the Horizon - All eyes - beyond next month's FOMC meeting, widely expected to yield another 25bps of normalization - are already on January 20th, 2017, inauguration day for President Trump. Will in between now and then the USD continue its recent strong surge - which could prove destabilizing for Emerging Markets which have been...

CDN ETF flows to mid-Nov – Inching up toward $110 Bn Industry AUM

In the first read of flows, respectively market impact since the momentous November 8th US Elections, Canadian Industry AUM looks to have gained around $643 MM of Assets overall, on a combination of net issuance (+$780.6MM), respectively moderately (though perhaps somewhat surprisingly) negative net market impact (-$123.1MM). Aggregate AUM (est) at Nov 15, 2016: CAD...

FBI Trumps FED? (TWTW – Oct 28-Nov 4, 2016)

FBI Trumps FED? - Funny thing this, while concerned that Russia's Putin might be trying to influence the outcome of this Tuesday's US Presidential elections (naturally he would benefit from a weakened America...), gauging from the latest polls, Americans appear oblivious to the fact that the FBI seems to have successfully done just that... Stay...

October & Year-to-date ETFs Performance Highlights

For a year that started with a devastating blow to markets - Recall the first 6 weeks of 2016 producing the worst start to any year just about ever ... Market Performance to the end of October suggests markets and market participants overall will stand to have enjoyed reasonable returns for the year. Unless of...

ETF Strategists – “A Distinct breed of Asset Managers”

ETF Strategists is a category of the overall ETF Eco-system gaining increased prominence in the market place and in the ETF space, while acting as well as a catalyst for further ETF adoption. I recently had the opportunity to discuss the ETF Strategist space with several strategists - Deborah Frame (Frame Global Asset Management); Francis...