Category Archives: ETF Insight Articles

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”)

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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...

Achilles Heel? (TWTW – Oct 24-28, 2016)

Achilles Heel? Bond Yields have been rising of late (US 10yrs: +0.25% since Sept 30). This, alongside higher volatility in equities, with which US High Yield is meaningfully correlated, could turn nasty for investors in the space at some point. This concern is perhaps particularly worth noting if Foreign investors, who apparently own some 39%...

Canada: Higher Oil prices, lower recession and rate cut risks = ?

Canadian Preferred Shares? This, in a nutshell, is the message Fiera Portfolio Manager Nicolas Normandeau delivered in his remarks during Horizons' latest Webinar "What's Next for Canadian Prefs?". His constructive outlook on the Canadian Pref market, predicated on continued modest economic growth here, no recession, and no rate cut, is also underpinned by continued global stimulative policies,...

Marmite … (TWTW – Oct 10-14, 2016)

Marmite ... Other than the Pound's continued pummeling, another sign of BREXIT's immediate impact is a row between Unilever and Tesco, with Unilever apparently seeking increases of some 10% across the board to partly offset sterling's decline. The casualty in this instance? No Marmite for you on the shelves in the UK! On the political front...

Factors, Multi-Factors and Factors going Global … potential relative opportunities?

Those keeping tabs of Factors methodologies, respectively keeping abreast of the Smart Beta phenomenon have - no doubt - by now come across several important points to consider when assessing their merits, respectively deciding which one(s) to incorporate in your portfolio construction. Here are some of them:
  • MSCI has identified 6 factors in particular, which have...

Introspection (TWTW – Oct 3-7, 2016)

Introspection - What banks, generally speaking, but Deutsche Bank more specifically must engage in, according to IMF Managing Director Christine Lagarde. Acknowledging Deutsche Bank was a member of those to which the label systemically significant applies, she went on to say that the bank must be examining how it would strengthen its balance sheet, exit...

Washing Machines (TWTW – Sept 26-30, 2016)

Washing Machines ... The week's biggest surprise wasn't the percentage of consumers planning to buy a washing machine, although it apparently came in at the highest level since the financial crisis. No, the SURPRISE was OPEC, with the Organization's key player Saudi Arabia agreeing to cut production, although the devil may well be in the details,...

8 Years on … 25 bps? (TWTW – Sept 12-16, 2016)

8 Years on ... 25 bps? September 15th marked the 8th anniversary of Lehman's demise, which sent the world spiraling down toward the  Great Recession from which it is still struggling to come through, but hasn't erased the deep scars of. Meanwhile, while last Monday's speech by FED Governor Lael Brainard dampened expectations of a...

Slicing & Dicing: CDN ETFs – High growth rate in low cost ETFs

Bottom line: the lowest cost segment of ETFs in Canada is growing at a significantly greater pace than the broader ETF space, which itself is enjoying strong growth. Between iShares and Vanguard, investors and their advisors have access to 41 aggressively priced ETFs. Both of these leading ETF providers offering on the low cost front will...

The world of ETF listings in Canada has just become even more competitive …

This morning, Aequitas NEO Exchange announced that BlackRock's iShares will be listing 5 iShares Funds (totalling 12 listings - given Advisors Series, and CAD hedged/unhedged versions) on the NEO exchange, come Q4, 2016. For investors, added liquidity, greater transparency, and more price competition all amount to presumably even greater incentives to look at ETFs if they...

Where to with Oil? CCX? HUC? HOU? or HOD?

News of the International Energy Agency this morning forecasting a surplus situation in crude inventories into 2017, noting it will be the fourth consecutive year of oversupply, is sending Crude prices lower this morning. Separately, Thomson Reuters, reporting on a significant reduction in long positions on the part of hedge funds accompanied by an increase in...