Category Archives: ETF Insight Articles

Sweet #MAGA (TWTW – July 17-21, 2017)

Sweet #MAGA - Or ... Sweet Nothing, which seems to be what the Administration has accomplished thus far on numerous fronts... Oh well, at least a weaker USD provides a window for the FED to continue to hike rates, even if Janet Yellen remains a perma Dove, and US stocks continue to do rather well,...

Mid-July Flows: Summer lulls …

Hardly anything to report as at mid-month, as far as inflows, respectively market impact, both of which are considered rather modest in relation to June 30, 2017 AUM levels. Likely the pause that refreshes as it were, with plenty of action on the way, presumably, for back to school......

10 ETFs I’d get rid of …

10 ETFs I'd get rid of ... and no, I don't own any of them ... While product proliferation and expansion in the ranks of ETFs Providers is the order of the day and likely to continue to be at the forefront for some time to come, last week's announcement by iShares of some ETF terminations...

Suppressing Decoherence (TWTW – July 10-14, 2017)

Suppressing Decoherence - A Quantum Computing concept that capture well the essence of what Central Bankers face going forward as they push ahead with a long overdue normalization ... Getting out from under the massive damage inflicted by the 2008/2009 Global Financial crisis has proven no small feat, and any glitches from here could...

Rising Rates (TWTW – Jul 3-7, 2017)

And it is a 94% probability event ... that the BoC will hike rates this week, on the back of a strong Canadian Employment number on Friday. State-side, the US also enjoyed a stronger than expected NFP number, with upward revisions to prior readings. All-in ... Not good for bonds, where yields have continued to...

Second Half? (Perspectives – July 2017)

Second Half? With ETFs in Canada enjoying record net inflows (Est: +$15.5 Billion) in H1, 2017,  market volatility still remarkably tame, and a generally favorable market backdrop - the question is whether these conditions will continue to prevail for the rest of 2017. Naturally,  it will also be interesting to see what trends investors chose...

O’Canada (TWTW – June 26-30, 2017)

O'Canada - ... And against the backdrop of a sharply ascending Loonie in June (+4.2% m/o/m vs the USD), Canada celebrates its 150th Birthday, eagerly anticipating what H2, 2017 will bring ... which according to rising odds, first off entails a rate hike by the Bank of Canada. This is a remarkable turn of events relative...

HMMJ – The Marijuana ETF

For those interested in marijuana stocks and who have been looking for a way to add some exposure to this new and burgeoning industry, HMMJ may just be the ticket!Horizon's CEO, Steve Hawkins, provided an update on HMMJ, the world's first marijuana ETF on a webinar held Tuesday (27/6). Below are some highlights from his...

WisdomTree: Moving away from …

No - Not Canada ... But staying fairly close ... to the Aggregates (your bond betas being the aggregates, if you will). WisdomTree launched two fixed income ETFs on Monday:
  • The WisdomTree Yield Enhanced Canada Aggregate Bod Index ETF (CAGG)
  • and the WisdomTree Yield Enhanced Canada Short Term Aggregate Bond Index ETF (CAGS)
In so doing, the US...

Warren likes … (TWTW – June 19-23, 2017)

Warren likes ... Canada! and so last week, he got himself a "made for Warren" deal a la ... what he did as the 2008/2009 Global Financial crisis was battering everyone, with his capital injection into Goldman Sachs at the time. What is a "made for Warren" deal? One which features juicy terms and conditions...

CETFA 2017-2019: Onward and Upward

I had the opportunity to catch up with Atul Tiwari (Vanguard Canada) following CETFA (Canadian ETF Association) 's recent AGM, at which Atul passed on the organization's Chairmanship function to BMO's Kevin Gopaul. Here are a few points that emerged from my discussion with Atul:
  • Strong AUM growth during his 2 years tenure (AUM moving from...

Truthful Hyperboles (TWTW – June 12-16, 2017)

Truthful Hyperboles - ... And the Trump Saga continueth, with testimony this past week from AG Jeff Sessions and from then, already discussions of when, or how, the 45th President might dismiss Mueller or even his boss ... Where does that end? On the business front, yielding to sustained stock price-performance related pressure, GE replaced its...

FED up (TWTW – June 5-9, 2017)

FED up - Last week saw market participants riveted to their TV screens watching former FBI Director James Comey's testimony to Congress, pondering where this saga takes us to next. The focus then shifted to UK elections described as catastrophic for the Tories, with Theresa May's grip on power threatened.  On tap this week, we...

Climate … Whaaat? (Perspectives – June 2017)

Climate ... Whaaat?  Having left European leaders last week unimpressed, including in relation to article 5 and NATO, US President Donald Trump has now succeeded in drawing their ire - as he pulled the US out of the Paris Accord. Recent Developments:
  • May Payrolls underwhelm - but June's FED hike is still seen as in the...

The Arrogance of Entitlement (TWTW – May 22-26, 2017)

The Arrogance of Entitlement - President Trump's Travels to the Middle East and Europe - including a visit to the Pope - failed to relieve the pressure stemming from the FBI investigation into his campaign's dealings with Russia... This is as news surfaced that his son-in-law Jared Kushner was being asked about his efforts to establish...

Multivariate Unfitness (TWTW – May 15-19, 2017)

Multivariate Unfitness - The obvious headline was "Witch Hunt", that which would fit the President's narrative. Naturally, the "other" narrative is and for a while can very much be expected to remain rather uncomfortable. That narrative is that of the world's most powerful man, a man used to get his ways in probably more ways...

“Snap” Trump (TWTW – May 8-12, 2017)

"Snap" Trump - While by now renown for his rapid fire Twitter prowess berating opponents, belittling the press etc, President Trump might in fact have more in common with Snap... Lots of "flash", chutzpah or whatever you choose to call it ... and then ... poof, the picture / follow through has just vanished ... This,...

No Contest (TWTW – May 1-5, 2017)

No Contest - The pollsters had all along predicted Marine Le Pen would fall short in a contest with Emmanuel Macron, and they were right , as in the event, Macron's victory came in at 66/34 (almost like the balanced portfolio-like 60/40 the latest predictions stood at Friday). It looks like it is as good...

Against all Odds (Perspectives May 2017)

Against all Odds - Markets continue to defy the odds, high valuations in the US, rising geopolitical tensions in Asia, winds of war on the trade front (NAFTA) - and the ongoing rise of populism, notably in Europe. French Presidential elections held May 7th could - with a Macron victory - possibly given markets there...

100 Days (TWTW – Apr 24-28, 2017)

100 Days - The first 100 days of Donald Trump's Presidency came and went, with much sabre rattling, be it with North Korea, or in the context of NAFTA... Has much been accomplished? Perhaps one thing - President Trump actually realizing that it is a lot harder a job than he thought ... Q1 US GDP...

Inherited or Merited (TWTW – Apr 17-21, 2017)

Inherited or Merited ... On Being French - Marine Le Pen. One of two contenders for the French Presidency, to be decided on May 7, 2017. Le Pen came out on top with 24.2% of votes in first round held this Sunday, and will face Macron, who recorded 21.4% of the votes, with Republican Filon...

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...