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 coming in a close 3rd.

So as far as markets, not the nightmare scenario a Le Pen Melenchon second round would have unleashed – thankfully … BUT, but, will earlier “sondages” (Polls) which had Macron come on top of Le Pen in the final round prove prescient? OR, will markets fear a BREXIT-like event that would see Marine Le Pen become the next French President – and … deliver on getting France out of the EURO experiment? The days ahead will tell us just that …

Latest Developments:

  • EUR/USD – and … the EUR just gained 2 figures against the Greenback relative to its level pre-today’s elections results – from EUR/USD 1.07 to 1.09 … will the relief this implies in terms of threat to the EURO stand?
  • Deutsche Bank – Was fined $156.6 MM for Volker Rules violations… Read more=> Click HERE!
  • BlackRock’s CEO Larry Fink – Sees market at risk of 5-10% decline as he reflects on warning signs for the U.S. Economy. Earnings’ season therefore the most important factor right now. Earnings have to validate the US market’s higher P/Es
  • Billionaire Investors Paul Tudor – Had a warning of his own: US Stocks should terrify Janet Yellen => Read more => Click HERE!
  • Alternative Canadian Mortgage Lender Home Capital – Seeing its stock price hammered by concerns related to the impact of efforts to tame the Toronto Real Estate Bubble.
  • There is no bubble? OK. Don’t worry, carry on … Looking back, I came across this from 2007, from a US Strategist, heading into the worst recession since the Great Depression: “Despite anticipating economic softness, we have a constructive outlook for equities in 2008, with a S&P 500 year-end price target of 1,700”. In the event, of course, 2008 ended with the S&P 500 down to around 890, and not hitting 1700 until … 5 years later … and in the meantime, the strategist’s firm in question … disappeared … with a “rescue” orchestrated by the US Government …
  • The UK’s Theresa May – called a snap election for June 8th, to strengthen her hand in upcoming BREXIT negotiations

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 0.81% PXG RAFI Global Fundamental 1.44% VCN FTSE Canada All Cap Index ETF 0.54%
XIC S&P/TSX Capped Composite 0.49% PXS RAFI US Fundamental Index 1.62% VCE FTSE Canada Index ETF 0.83%
CRQ RAFI CDN Fundamental 0.53% QQC/F NASDAQ 100 CAD Hedged 1.48% VUN CRSP US Total Market Index Unhedged 2.38%
XSP S&P 500 CAD Hedged 0.82% PZC RAFI CDN Small-Mid Fundam -0.88% VSP S&P 500 CAD Hedged 0.87%
XUS S&P500 2.19% VXC FTSE All-World Ex Canada Index ETF 2.17%
XMU MSCI Min Vol US 2.11% XXM/b Morningstar US Value (Unh) 3.35% VEF FTSE Developed ex North-Am CAD H 0.16%
CLU RAFI US Fund 1000 CAD H 0.83% YXM/b Morningstar US Momentum (Unh) 3.35% VDU FTSE Developed ex North-America 1.75%
XSU Russell 2000 CAD Hedged 2.53% FXM Morningstar CDN Value -0.42% VE FTSE Developed Europe 1.67%
XIN MSCI EAFE CAD Hedged 0.00% WXM Morningstar CDN Momentum 0.52% VA FTSE Developed Asia Pacific 2.69%
XEH MSCI Europe IMI CAD H -0.64% VXM/b Morningstar Intl Value (Unh) 2.13% VEE FTSE Emerging Mkts 1.16%
XEC MSCI EM IMI 1.66% ZXM/b Morningstar Intl Momentum (Unh) 1.28% HAZ Active Global Dividends 1.64%
XMM MSCI Min Vol Emerging 1.54% RWE MSCI Europe Low Risk Weighted (H) -0.68% HHF Morningstar Hedge Fund Index 0.66%
CWO RAFI Broad Emerging 0.78% HMF Auspice Managed Futures 0.00%
CJP RAFI Fundam Japan CAD H 2.46% ZDJ Dow Jones CAD Hedged 0.46% HAC Seasonal Rotation 0.32%
CDZ CDN Div Aristocrats 0.18% ZEQ MSCI Europe High Quality CAD H -1.13% HPR Active Preferred Shares -1.22%
week of: Apr 17-21, 2017 Source: ETFinsight/Bloomberg

Weekly Volumes for the week of Apr 17-21, 2017:

weekly volume data:
Total Volume non-leveraged $3,895,535,582
top 10 Volume non leveraged $1,864,212,039
Total Volume leveraged $1,342,715,179
top 5 Volume leveraged $901,985,697
Total Volumes overall: $5,238,250,760
Top 10 + Top 5: $2,766,197,736
top 10 non leveraged % of total nl: 47.9%
top 5 leveraged % of total leveraged 67.2%
Top 10 + Top 5 as % of total traded: 52.8%

Recent Volumes:

Volumes remained low this past week – perhaps a reflection of the fact that some may have had not just a 3 day week end for Easter, but might have tagged on Easter Monday, with several overseas markets closed anyways…

volumes week ending April 21, 2017

iShares – Turnill: Where we see investing opportunities now

Vanguard – Upcoming Webinar on behavioral Finance => Click HERE!

BMO ETFs – April 2017 distributions => Click HERE!

Horizons ETFs – the Horizons Medical Marijuana ETF (HMMJ): AUM through $125 MM, but if you bought at the recent high, you’re already in correction territory … is that it for the Pot bubble? Not sure, but this ETF certainly provides an opportunity to keep an eye on the space …

April Distributions – Active => Click HERE!

April Distributions – Covered Calls => Click HERE!

and remember: Advisors’ Series ETFs are set to disappear by month-end, more specifically be converted into common units => Read announcement to that effect made late 2016 =. Click HERE!

PowerShares – April 2017 distributions => Click Here!

RBC GAM ETFs – April 2017 distributions => Click HERE!

Purpose – April 2017 distributions => Click HERE!

First Asset – Momentum and Value: dead even in US; Momo ahead in Canada; Value ahead on the International front … Which of the two will prevail in 2017 overall in the various regions?

Other –

Manulife – Joined the ETF fray this past week, launching multi-factors DFA-powered ETFs => Click HERE to read More.

S&P | Dow Jones : SPIVA Canada Report => still the same old challenge … beating the market is just a lot harder than anyone makes it sound … => Click HERE!

CETFA – an invitation to attend a breakfast event May 3rd discussing the SPIVA findings => cetfa invitation spiva event toronto


Top and Bottom performing ETFs for the week of Apr 17-21, 2017:

Ticker Name % Change Avg Price Weekly Volume $ Volume traded
Top Performers week of Apr 17-21, 2017
FHB CN Equity First Asset European Bank ETF 5.72% $8.13 36,205 $292,552
DWG CN Equity PowerShares DWA Global Momentum Index ETF 4.39% $20.97 36,933 $769,222
ZBK CN Equity BMO Equal Weight US Banks Index ETF 3.49% $23.53 702,897 $16,407,524
XMC CN Equity iShares S&P U.S. Mid-Cap Index ETF 3.48% $17.61 36,903 $647,134
DXG CN Equity Dynamic Ishares Active Global Dividend Etf 3.43% $21.46 14,813 $320,059
XXM/B CN Equity First Asset Morningstar US Value Index ETF 3.35% $17.36 28,818 $497,037
YXM/B CN Equity First Asset Morningstar US Momentum Index ETF 3.35% $15.79 45,294 $714,880
FHQ CN Equity First Trust AlphaDEX US Technology Sector Index ETF 3.26% $27.84 8,128 $226,970
HBG CN Equity Hamilton Capital Global Bank ETF 2.97% $20.54 25,636 $526,715
FHD CN Equity First Trust AlphaDEX US Consumer Discretionary Sector Index ETF 2.91% $23.43 10,756 $248,343
Bottom Performers
XCS CN Equity iShares S&P/TSX SmallCap Index ETF -2.17% $16.90 162,503 $2,748,883
RPF CN Equity RBC Canadian Preferred Share ETF -2.38% $23.60 465,046 $10,994,219
ZJG CN Equity BMO Junior Gold Index ETF -2.52% $8.92 738,258 $6,583,817
SVR CN Equity iShares Silver Bullion ETF -2.54% $10.09 112,805 $1,141,569
HMMJ CN Equity Horizons Medical Marijuana Life Sciences ETF -2.94% $10.55 4,739,493 $50,114,392
ZJO CN Equity BMO Junior Oil Index ETF -3.29% $14.63 319,244 $4,719,720
ZGD CN Equity BMO S&P/TSX Equal Weight Global Gold Index ETF -4.05% $10.73 26,523 $284,626
HUV CN Equity BetaPro S&P 500 VIX Short-Term Futures ETF -5.00% $6.09 210,702 $1,295,257
HUC CN Equity Horizons Crude Oil ETF -6.09% $11.93 53,285 $629,190
CCX CN Equity Auspice Canadian Crude Oil Index ETF -7.87% $8.78 36,911 $328,727

Top Performing ETFs – Bank ETFs rebounded from the prior week’s weakness, while Momentum and Value were in a dead heat in the US, and US Technology enjoyed a decent week as far as the First Trust Technology sector – but in part it was currency related, as that one, unlike the NASDAQ ETFs with which it directly competes, isn’t CAD hedged.

Bottom Performing ETFs – Prefs broke their recent strong performance this past week, as illustrated by the RBC Actively Managed Pref ETF, which declined 2.38% on the week. Beyond that, Oil related ETFs weakened as US shale production gains serve to offset expectations of continued production discipline on the part of OPEC, bullish expectations on the part of CITIGROUP (USD 60+ / barrel) notwithstanding…

Last week’s Sector Performance:

sector performance week ending april 21, 2017

Comments are closed.