Sensitive Issue (TWTW – Jan 23-27, 2017)

Sensitive Issue – Flurry of activity in US President Trump’s first week in office. From pipelines, to building cars in America, to naming countries from which immigrants won’t be welcomed, to meeting UK PM Theresa May, to … the WALL.

That $20 Billion Wall, the one  that caused Mexican President Pena Nieto to cancel his trip to Washington, with attendant risk of full-on trade war rising. 7 days of the first 100 days of President Trump’s 4 year term. And … was it this week-end he was to check-in with Russian President Vladimir Putin by phone?

Oh, and yes, the Dow Jones Industrial Average for the first time in its history crossed the 20,000 mark. A mark many correctly observed as not being particularly meaningful, other than being a pretty and round number (remember Dow 10,000 in 2000? it actually happened first in 1999…), but other than that signifying that markets are still for the moment in their post Trump election honeymoon… Or is it just the Goldman Sachs effect, seeing GS stock’s contributed the most to the boost since November 8th.

Oh, as for the Sensitive Issue – it is the issue of who will ultimately foot the $20 Billion bill for that lovely wall idea? Mexico? As reiterated throughout Trump’s campaign? Or an import tax essentially resulting in US consumers picking up the tab?

Recent Developments:

  • Trump seeks to revive Keystone Pipeline => click HERE! – Subject to terms renegotiated by “us”, with pipe built in the US.  Good news part for Canada? Should help with the Western Canadian crude / WTI differential!
  • Citigroup – expects 2017 to be the charm, as far as profits there finally showing some good growth (ie 10% at least). The caveat? Citi’s strategist was already thinking along those lines back in 2015 and 2016… Eventually though – this could come to pass, providing the EUR continues on its weakning trend …
  • BREXIT – UK courts determine Parliament will have say in triggering Article 50
  • Johnson & Johnson – agrees to buy Actelion for $30 Billion.
  • European stocks – hit a 13 months high, helped along by bank stocks
  • UBS – saw clients pull out CHF 15.2 Billion in assets in Q4, 2016

Latest market numbers as seen through the ETFs providing exposure to the most commonly referred to benchmarks:

 

ticker name change ticker name change ticker name change
XIU S&P/TSX 60 0.03% PXG RAFI Global Fundamental -0.33% VCN FTSE Canada All Cap Index ETF 0.25%
XIC S&P/TSX Capped Composite 0.23% PXS RAFI US Fundamental Index -0.77% VCE FTSE Canada Index ETF 0.00%
CRQ RAFI CDN Fundamental 0.26% QQC/F NASDAQ 100 CAD Hedged 2.02% VUN CRSP US Total Market Index Unhedged -0.33%
XSP S&P 500 CAD Hedged 0.96% PZC RAFI CDN Small-Mid Fundam 0.59% VSP S&P 500 CAD Hedged 1.00%
XUS S&P500 -0.40% VXC FTSE All-World Ex Canada Index ETF -0.35%
XMU MSCI Min Vol US -0.94% XXM/b Morningstar US Value (Unh) -1.00% VEF FTSE Developed ex North-Am CAD H 0.68%
CLU RAFI US Fund 1000 CAD H 0.97% YXM/b Morningstar US Momentum (Unh) 0.26% VDU FTSE Developed ex North-America -0.29%
XSU Russell 2000 CAD Hedged 1.28% FXM Morningstar CDN Value 1.79% VE FTSE Developed Europe -0.08%
XIN MSCI EAFE CAD Hedged 0.80% WXM Morningstar CDN Momentum 1.72% VA FTSE Developed Asia Pacific -0.10%
XEH MSCI Europe IMI CAD H 0.54% VXM/b Morningstar Intl Value (Unh) -0.54% VEE FTSE Emerging Mkts 1.28%
XEC MSCI EM IMI 1.18% ZXM/b Morningstar Intl Momentum (Unh) 0.20% HAZ Active Global Dividends -1.03%
XMM MSCI Min Vol Emerging -0.12% RWE MSCI Europe Low Risk Weighted (H) 0.30% HHF Morningstar Hedge Fund Index 0.14%
CWO RAFI Broad Emerging 1.21% HMF Auspice Managed Futures 0.71%
CJP RAFI Fundam Japan CAD H 1.06% ZDJ Dow Jones CAD Hedged 1.30% HAC Seasonal Rotation 0.38%
CDZ CDN Div Aristocrats 0.15% ZEQ MSCI Europe High Quality CAD H 0.50% HPR Active Preferred Shares 1.57%
week of: Jan 23-27, 2017 Source: ETFinsight/Bloomberg

Weekly Volumes for the week of January 23-27, 2017:

weekly volume data:
Total Volume non-leveraged $7,047,739,389
top 10 Volume non leveraged $3,652,136,732
Total Volume leveraged $1,919,909,705
top 5 Volume leveraged $1,325,006,926
Total Volumes overall: $8,967,649,094
Top 10 + Top 5: $4,977,143,658
top 10 non leveraged % of total nl: 51.8%
top 5 leveraged % of total leveraged 69.0%
Top 10 + Top 5 as % of total traded: 55.5%

Volumes picked up notably during the week, reaching their highest level since pre-holidays trading kicked in in the week of Dec 19-23, 2016.

ETFinsight volumes for week ending january 27, 2017

iShares – Launched their suite of Actively Managed “Dynamic iShares” ETFs => click HERE to read more!

Vanguard – Barrickman: “Bonds and the good news about rising interest rates

Horizons – January 2017 distributions for Actively Managed ETFs => Click HERE!

January 2017 distributions for Covered Call ETFS => Click HERE!

First Asset – Value and Momentum neck and neck in Canada, while Value slightly to the negative in US and Internationally, while Momentum tags on modest gains. 

Other:

Fundata – Presented its Fund Grade A+ awards at the AGO in Toronto => Congratulations to all winners, and in particular to the 35 ETFs that were bestowed the Grade A+ Award! => Read More, Click HERE!

Mackenzie – launches Mackenzie Maximum Diversification EM ETF => Click HERE!

TD Asset Management – looks to be on its way to utilize the mutual fund (D Series) model to grow its ETF business, via the introduction of several ETF Portfolios:

While for its part … it is beginning to get complicated if you ask me … AGF looks to be launching Exchange Traded Mutual Funds that will consist of actively managing ETFs:

QuantShares Enhanced Core Canadian Equity ETF QCD

QuantShares Enhanced Core US Equity ETF QUS

QuantShares Enhanced Core International Equity ETF QIE

QuantShares Enhanced Core Emerging Markets Equity ETF QEM

QuantShares Global Equity Rotation ETF QGL

QuantShares MultiAsset Allocation ETF QMA

QuantShares MultiAsset Income Allocation ETF QMY

 

Top and Bottom performing ETFs for the week of January 23-27, 2017:

Ticker Name % Change Avg Price Weekly Volume $ Volume traded
Top Performers week of (Jan 23-27, 2017)
ZMT CN Equity BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF 5.59% $10.59 660,071 $7,046,015
ZUB CN Equity BMO Equal Weight US Banks Hedged to CAD Index ETF 3.27% $25.90 1,322,631 $34,280,648
XIT CN Equity iShares S&P/TSX Capped Information Technology Index ETF 3.15% $13.81 81,479 $1,131,008
HBG CN Equity Hamilton Capital Global Bank ETF 2.62% $20.47 124,408 $2,572,767
CBQ CN Equity iShares BRIC Index ETF 2.54% $20.88 73,022 $1,534,292
HFP CN Equity Horizons Active Floating Rate Preferred Share ETF 2.47% $9.01 312,516 $2,823,573
TXF CN Equity First Asset Tech Giants Covered Call ETF 2.39% $13.54 632,234 $8,574,616
XID CN Equity iShares India Index ETF 2.30% $29.03 56,477 $1,643,028
ZID CN Equity BMO India Equity Index ETF 2.24% $18.44 90,051 $1,657,442
PPS CN Equity PowerShares Canadian Preferred Share Index ETF 2.07% $15.59 206,370 $3,232,159
Bottom Performers
ZEO CN Equity BMO S&P/TSX Equal Weight Oil & Gas Index ETF -1.76% $12.43 1,678,795 $20,917,722
ZLU CN Equity BMO Low Volatility US Equity ETF -1.91% $29.39 611,208 $17,961,887
XHU CN Equity iShares US High Dividend Equity Index ETF -1.95% $22.26 77,160 $1,729,684
ZPW CN Equity BMO US Put Write ETF -2.01% $19.15 672,870 $12,857,520
XEG CN Equity iShares S&P/TSX Capped Energy Index ETF -2.02% $13.23 23,199,534 $307,068,856
HXE CN Equity Horizons S&P/TSX Capped Energy Index ETF -2.06% $21.59 499,087 $10,849,255
RIG CN Equity RBC Quant Global Infrastructure Leaders ETF -2.63% $19.87 51,887 $1,033,289
CGL/C CN Equity iShares Gold Bullion ETF -3.02% $14.00 68,153 $956,130
SVR/C CN Equity iShares Silver Bullion ETF -3.52% $9.00 42,370 $377,572
HUV CN Equity BetaPro S&P 500 VIX Short-Term Futures ETF -8.61% $6.94 310,243 $2,190,114

Top Performing ETFs – Decent rebound from US banks last week; with India and BRIC ETFs also amongst gainers (despite protectionist rhetoric from the US). CDN Prefs also showing decent gains.

Bottom Performing ETFs – Just a pause? for Energy stocks? or more gains to give up? Besides Energy, Gold also gave back some of its recent gains, with both US Low Vol and US High Div also on the list of ETFs losing some ground in week 1 of the Trump Presidency.

Sector Performance for the week:

ETFinsight sector view for week ending Jan 27, 2017

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