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?
- 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:
|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.
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.
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:
- TD Managed Aggressive Growth ETF Portfolio
- TD Managed Balanced Growth ETF Portfolio
- TD Managed Income & Moderate Growth ETF Portfolio
- TD Managed Income ETF Portfolio
- TD Managed Maximum Equity Growth ETF Portfolio
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|
|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: