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 is an interesting one perhaps in that regard: indeed, who is right? Those pushing crude prices higher, or those holding back energy stock prices? Risk of disappointment for the former, versus  buying opportunity in the latter?

crude versus energy stocks

Latest Developments:

  • Inflation – Canadian inflation picks up (more than bond yields … BTW)
  • Trump’s friend “Jim” – thinks Paris isn’t Paris anymore, prompting Francois Hollande to admonish the US to support their allies …
  • RBC – Earnings sail past expectations to a 24% year over year gain courtesy reduced Loan Loss Provisions
  • Dividend increases – both RY and CM boosted dividends by 5 percent for Royal, respectively 2.4% for Commerce
  • The Caisse’s Michael Sabia – sees markets being complacent and protectionism as looming threat
  • Warren Buffet – In Berkshire’s latest annual report lamenting the waste (on fees…) of $100 Billion in recent years … admonishing investors small and wealthy to instead buy into passive – S&P500 type exposure.

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 -2.70% PXG RAFI Global Fundamental -0.09% VCN FTSE Canada All Cap Index ETF -1.93%
XIC S&P/TSX Capped Composite -1.92% PXS RAFI US Fundamental Index 0.47% VCE FTSE Canada Index ETF -1.91%
CRQ RAFI CDN Fundamental -2.59% QQC/F NASDAQ 100 CAD Hedged 0.45% VUN CRSP US Total Market Index Unhedged 0.67%
XSP S&P 500 CAD Hedged 0.71% PZC RAFI CDN Small-Mid Fundam -1.54% VSP S&P 500 CAD Hedged 0.60%
XUS S&P500 0.81% VXC FTSE All-World Ex Canada Index ETF 0.40%
XMU MSCI Min Vol US 1.62% XXM/b Morningstar US Value (Unh) 0.33% VEF FTSE Developed ex North-Am CAD H -0.43%
CLU RAFI US Fund 1000 CAD H 0.29% YXM/b Morningstar US Momentum (Unh) -1.87% VDU FTSE Developed ex North-America -0.25%
XSU Russell 2000 CAD Hedged -0.40% FXM Morningstar CDN Value -2.49% VE FTSE Developed Europe -0.51%
XIN MSCI EAFE CAD Hedged -0.25% WXM Morningstar CDN Momentum -1.43% VA FTSE Developed Asia Pacific 0.69%
XEH MSCI Europe IMI CAD H -0.35% VXM/b Morningstar Intl Value (Unh) 0.00% VEE FTSE Emerging Mkts 0.16%
XEC MSCI EM IMI 0.42% ZXM/b Morningstar Intl Momentum (Unh) -0.43% HAZ Active Global Dividends 0.56%
XMM MSCI Min Vol Emerging 0.24% RWE MSCI Europe Low Risk Weighted (H) 0.25% HHF Morningstar Hedge Fund Index 0.94%
CWO RAFI Broad Emerging -0.49% HMF Auspice Managed Futures -1.14%
CJP RAFI Fundam Japan CAD H -0.35% ZDJ Dow Jones CAD Hedged 0.93% HAC Seasonal Rotation -0.64%
CDZ CDN Div Aristocrats -1.69% ZEQ MSCI Europe High Quality CAD H 0.53% HPR Active Preferred Shares 1.09%
week of: Feb 20-24, 2017 Source: ETFinsight/Bloomberg

Weekly Volumes for the week of Feb 20-24, 2017:

weekly volume data:
Total Volume non-leveraged $6,070,169,508
top 10 Volume non leveraged $3,435,791,394
Total Volume leveraged $1,812,065,952
top 5 Volume leveraged $1,318,078,610
Total Volumes overall: $7,882,235,460
Top 10 + Top 5: $4,753,870,004
top 10 non leveraged % of total nl: 56.6%
top 5 leveraged % of total leveraged 72.7%
Top 10 + Top 5 as % of total traded: 60.3%

weekly volumes feb 24, 2017

 

iShares – Rosenberg: “EM Valuations cause for a pause”

Vanguard – Schlanger: “Viewing the Future through a range of Possibilities”

Horizons ETFs – CEO Hawkins on: “10th year anniversary milestone”

First Asset –On the occasion of the recent 5th anniversary of their Canadian Momentum and Value ETFs (WXM and FXM), First Asset ran some numbers on the effect an allocation of 25% to each combined with a 50% allocation to XIC would look like – and here it is:

Click HERE! 

Other: iShares completed the migration of their RAFI ETFs from TSX to NEO Exchange – Read more: Click HERE!

Hedging or not Hedging – Forstrong’s framework => Ask Tyler!

Top and Bottom performing ETFs for the week of Feb 20-24, 2017:

Ticker Name % Change Avg Price Weekly Volume $ Volume traded
Top Performers week of (Feb 20-24, 2017)
HUV CN Equity BetaPro S&P 500 VIX Short-Term Futures ETF 4.03% $6.33 139,106 $889,640
ZID CN Equity BMO India Equity Index ETF 3.40% $19.63 108,709 $2,141,794
SVR CN Equity iShares Silver Bullion ETF 2.61% $10.09 53,528 $539,308
EHE CN Equity Wisdomtree Europe Hedged Equity Index ETF 2.05% $23.47 20,700 $484,583
XRB CN Equity iShares Canadian Real Return Bond Index ETF 2.02% $23.88 411,985 $9,826,761
ZLU/U CN Equity BMO Low Volatility US Equity ETF 1.99% $23.78 71,852 $1,701,865
ZLH CN Equity BMO Low Volatility US Equity Hedged to Cad Etf 1.96% $22.14 1,633,010 $36,076,284
CGL CN Equity iShares Gold Bullion ETF 1.90% $10.87 1,906,919 $20,772,698
ZLU CN Equity BMO Low Volatility US Equity ETF 1.89% $30.42 1,478,349 $44,939,850
XID CN Equity iShares India Index ETF 1.82% $30.64 26,175 $803,651
Bottom Performers
OXF CN Equity First Asset Can-Energy Covered Call ETF -3.89% $11.45 36,405 $420,126
ZJG CN Equity BMO Junior Gold Index ETF -3.90% $9.57 688,076 $6,645,989
XEG CN Equity iShares S&P/TSX Capped Energy Index ETF -4.14% $12.87 11,452,005 $146,792,250
HXE CN Equity Horizons S&P/TSX Capped Energy Index ETF -4.15% $21.00 354,223 $7,567,191
ZEO CN Equity BMO S&P/TSX Equal Weight Oil & Gas Index ETF -4.24% $12.10 1,132,758 $13,717,507
FHB CN Equity First Asset European Bank ETF -4.25% $7.64 91,416 $696,590
ZMT CN Equity BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF -4.46% $10.65 472,371 $4,992,736
HUN CN Equity Horizons Natural Gas ETF -4.75% $6.47 81,073 $523,387
XBM CN Equity iShares S&P/TSX Global Base Metals Index ETF -5.29% $12.46 482,158 $5,965,538
HNY CN Equity Horizons Natural Gas Yield ETF -6.20% $13.32 113,082 $1,502,801

Top Performing ETFs – Led by a rare uptick in volatility (more to come?), respectively India and Low Volatility (return to favor?).

Bottom Performing ETFs – Nat Gas and Energy – leading to the question Myles asked above – who is right bulls on crude pushing crude higher, respectively less ebullient investors in Energy stocks that have taken either taken some profits, or wish they had…

Another item perhaps worthy of mention – Gold still doing well – while Junior Gold Equities on the losing side of the equation. A sign Bullion set to disappoint – respectively that the rally in the stocks has ran its course?

Sector Performance for the week:

sectors performance week of feb 24, 2017

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