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 go back to more mundane matters, such as the latest FOMC meeting, with a strong consensus expecting a further 25 bps hike come Wednesday …

Recent Developments:

  •  President Trump – declared himself 100% willing to testify under oath to respond to James Comey’s testimony – whom he described as a leaker …
  • James Comey, for his part – painted a picture lining up perfectly with the narrative of what looks to have been his complete lack of trust in the 45th President… Will he go down in history as the one individual that effectively wiped out both of the would be 45th US President?
  • The GBP –  got hit by the UK Election results – results which certainly didn’t meet Theresa May’s expectations going in … Forget getting that stronger mandate!
  • Tensions in the Middle East – Qatar found itself isolated by Saudi Arabia and three other Arab countries, in retaliation for its ties with Iran and Islamist groups in the region according to Bloomberg.
  • Trump’s rapid fire tweets – in the wake of the June 3rd terrorist attack at London Bridge managed to alienate many in the UK …
  • Yields in China – Which have climbed recently – presumably in part in response to Moody’s downgrade – were deemed attractive according to Alllianz
  • Trump’s AG Jeff Sessions – apparently is considering resigning … with, presumably, Comey’s testimony to the effect he may have had one more meeting with the Russians not helping … As far as the Donald though, from his perspective: “Complete Vindication” …

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

ticker name change ticker name change ticker name change
XIU S&P/TSX 60 0.23% PXG RAFI Global Fundamental 0.57% VCN FTSE Canada All Cap Index ETF 0.35%
XIC S&P/TSX Capped Composite 0.23% PXS RAFI US Fundamental Index -0.25% VCE FTSE Canada Index ETF 0.18%
CRQ RAFI CDN Fundamental 0.40% QQC/F NASDAQ 100 CAD Hedged -2.44% VUN CRSP US Total Market Index Unhedged -0.41%
XSP S&P 500 CAD Hedged -0.21% PZC RAFI CDN Small-Mid Fundam 1.84% VSP S&P 500 CAD Hedged -0.28%
XUS S&P500 -0.46% VXC FTSE All-World Ex Canada Index ETF -0.88%
XMU MSCI Min Vol US -1.27% XXM/b Morningstar US Value (Unh) -0.18% VEF FTSE Developed ex North-Am CAD H -0.82%
CLU RAFI US Fund 1000 CAD H 0.39% YXM/b Morningstar US Momentum (Unh) -1.03% VDU FTSE Developed ex North-America -1.51%
XSU Russell 2000 CAD Hedged 1.20% FXM Morningstar CDN Value 0.00% VE FTSE Developed Europe -2.15%
XIN MSCI EAFE CAD Hedged -0.96% WXM Morningstar CDN Momentum -0.45% VA FTSE Developed Asia Pacific -0.65%
XEH MSCI Europe IMI CAD H -0.92% VXM/b Morningstar Intl Value (Unh) -1.64% VEE FTSE Emerging Mkts -0.60%
XEC MSCI EM IMI -0.41% ZXM/b Morningstar Intl Momentum (Unh) -0.20% HAZ Active Global Dividends -0.85%
XMM MSCI Min Vol Emerging -0.58% RWE MSCI Europe Low Risk Weighted (H) -1.27% HHF Morningstar Hedge Fund Index -0.22%
CWO RAFI Broad Emerging -1.20% HMF Auspice Managed Futures 2.20%
CJP RAFI Fundam Japan CAD H -0.96% ZDJ Dow Jones CAD Hedged 0.14% HAC Seasonal Rotation -0.16%
CDZ CDN Div Aristocrats -0.54% ZEQ MSCI Europe High Quality CAD H -1.78% HPR Active Preferred Shares 0.39%
week of: June 5-9, 2017 OVERALL Source: ETFinsight/Bloomberg

Respectively through available “FACTORS” (Smart or Strategic Beta) ETFs:

ticker name change ticker name change
RAFI: Value: Yield:
CRQ RAFI CDN Fundamental 0.40% VXM/b Morningstar Intl Value (Unh) -1.64% CDZ iShares S&P/TSX Canadian Dividend Aristocrats Index ETF -0.54%
CLU RAFI US Fund 1000 CAD H 0.39% XXM/b Morningstar US Value (Unh) -0.18% XHU iShares US High Dividend Equity Index ETF -0.17%
CJP RAFI Fundam Japan CAD H -0.96% FXM Morningstar CDN Value 0.00% VGG Vanguard US Dividend Appreciation Index ETF -0.76%
CWO RAFI Broad Emerging -1.20% XCV iShares Canadian Value Index ETF 0.48% CUD iShares US Dividend Growers Index ETF CAD-Hedged 0.26%
PXG RAFI Global Fundamental 0.57% VVL Vanguard Global Value Factor Etf 0.00%
PZC RAFI CDN Small-Mid Fundam 1.84% Momentum:
YXM/b Morningstar US Momentum (Unh) -1.03%
Min Vol: ZXM/b Morningstar Intl Momentum (Unh) -0.20%
VVO Vanguard Global Minimum Volatility Etf -0.82% WXM Morningstar CDN Momentum -0.45% Multi-Factors:
XMW MSCI Min Vol World -1.28% VMO Vanguard Global Momentum Factor Etf 0.16% XFC iShares Edge MSCI Multifactor Canada Index ETF 0.35%
XMI MSCI Min Vol EAFE -2.01% Liquidity: XFS iShares Edge MSCI Multifactor USA Index ETF -0.72%
XMM MSCI Min Vol Emerging -0.58% VLQ Vanguard Global Liquidity Factor Etf -1.01% XFI iShares Edge MSCI Multifactor EAFE Index ETF -1.85%
XMU MSCI Min Vol US -1.27% Quality: Low Risk Weighted:
XMV MSCI Min Vol Canada -0.07% ZEQ BMO MSCI Europe High Quality Hedged To CAD Index ETF -1.78% RWE First Asset MSCI Europe Low Risk Weighted ETF -1.27%
week of: June 5-9, 2017 FACTORS / SMART BETA / STRATEGIC BETA Source: ETFinsight/Bloomberg

Check out the above table: More Factors, including Multi Factors, as well as Individual Factors on a Global basis, with more individual ETF solutions presented.

As well as the following table – which looks at capturing ETFs managed by Strategists, respectively wrapping several ETFs in one to solve for Conservative, Balanced, or Growth objectives:

ticker name change ticker name change ticker name change
HGM Horizons Managed Global Opportunities ETF -0.45%
EXGG Excel Global Growth Asset Allocation Etf -0.51% HAC Horizons Seasonal Rotation ETF -0.16%
EXGB Excel Global Balanced Asset Allocation Etf -0.51% HRA Horizons Global Risk Parity ETF 0.20%
HHF Horizons Morningstar Hedge Fund Index ETF -0.22%
DWG PowerShares DWA Global Momentum Index ETF 0.31%
HMA Horizons Managed Multi-Asset Momentum ETF 2.23%
XTR iShares Diversified Monthly Income ETF -0.09% XGR iShares Growth Core Portfolio Builder Fund 0.52%
FIE iShares Canadian Financial Monthly Income ETF 1.57% XCR iShares Conservative Core Portfolio Builder Fund -0.04%
ZMI BMO Monthly Income ETF -0.24% XGC iShares Global Completion Portfolio Builder Fund 0.19%
CBD iShares Balanced Income CorePortfolio Index ETF -0.22% FUT First Asset US Tactical Sector Allocation Index ETF -1.12%
ETP First Trust Global Risk Managed Income Index ETF 0.15% PRP #N/A #N/A
CBN iShares Balanced Growth CorePortfolio Index ETF -0.34%
XAL iShares Alternatives Completion Portfolio Builder Fund -0.55%
week of: June 5-9, 2017 ETF Strategists & ETFs of ETFs Source: ETFinsight/Bloomberg

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Weekly Volumes for the week of June 5-9, 2017:

weekly volume data:
Total Volume non-leveraged $4,952,336,230
top 10 Volume non leveraged $2,133,600,671
Total Volume leveraged $1,574,858,743
top 5 Volume leveraged $1,051,582,540
Total Volumes overall: $6,527,194,974
Top 10 + Top 5: $3,185,183,211
top 10 non leveraged % of total nl: 43.1%
top 5 leveraged % of total leveraged 66.8%
Top 10 + Top 5 as % of total traded: 48.8%

iShares – Koesterich: Don’t read too much into the USD decline

Shores: Top 5 smart beta FAQs

Vanguard – Global Macro Matters: A Look at the Labour Market

First Asset – PACCs and SWPs are … gone at First Asset … Read more => Click HERE!

Shame, that, if you ask me … that said, DRIPs live on!

Horizons – HMMJ already undergoes … a name change => Click HERE!

Franklin Templeton – Following up on the original two ETFs they launched May 30th, Franklin launched a further 2 on June 5th => Click HERE to read More!


ETFinsight – Latest Monthly Perspective: June 2017 = Climate … Whaat? 

ETFs Assets neared CAD 130 Billion as at May 31, 2017, powered ahead by record net issuance, both for the month, and for the year-to-date period.

Clare O’Hara (Globe and Mail) – on Mutual-fund firms turning to ETFs (Click HERE!)

“This is a landscape that is increasingly going to migrate toward active management … “(according to AGF …) – my take? be it as it may in as far as what new entrants bring to the table (looking to stay true to their active stripes …) don’t be lulled into thinking all of a sudden that low cost pure passive broadly diversified isn’t still very much what will help your portfolios!

Top and Bottom performing ETFs for the week of June 5-9, 2017:

Ticker Name % Change Avg Price Weekly Volume $ Volume traded
Top Performers week of June 5-9, 2017
ZJG CN Equity BMO Junior Gold Index ETF 5.58% $8.52 908,712 $7,739,421
ZUB CN Equity BMO Equal Weight US Banks Hedged to CAD Index ETF 5.45% $25.16 1,150,111 $29,085,842
ZBK CN Equity BMO Equal Weight US Banks Index ETF 5.04% $23.92 395,194 $9,520,879
ZMT CN Equity BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF 4.74% $9.48 117,558 $1,119,732
XBM CN Equity iShares S&P/TSX Global Base Metals Index ETF 3.80% $11.21 89,981 $1,000,297
HBG CN Equity Hamilton Capital Global Bank ETF 2.14% $21.07 82,002 $1,734,118
FLI CN Equity First Asset U.S. & Canada Lifeco Income ETF 2.04% $12.69 143,351 $1,818,979
ZGD CN Equity BMO S&P/TSX Equal Weight Global Gold Index ETF 2.02% $10.23 96,416 $993,225
ZEB CN Equity BMO S&P/TSX Equal Weight Banks Index ETF 1.85% $26.53 7,533,528 $200,353,524
FHE CN Equity First Trust AlphaDEX US Energy Sector Index ETF 1.84% $12.04 98,635 $1,177,792
Bottom Performers
ZLI CN Equity BMO Low Volatility International Equity ETF -2.28% $24.42 60,051 $1,462,769
ZQQ CN Equity BMO Nasdaq 100 Equity Hedged To CAD Index ETF -2.38% $44.81 882,090 $39,230,881
QQC/F CN Equity PowerShares QQQ Index ETF -2.44% $50.94 758,558 $38,193,333
XQQ CN Equity iShares NASDAQ 100 Index ETF CAD-Hedged -2.46% $48.14 233,494 $11,153,664
FHQ CN Equity First Trust AlphaDEX US Technology Sector Index ETF -2.49% $30.41 35,207 $1,068,840
XST CN Equity iShares S&P/TSX Capped Consumer Staples Index ETF -2.55% $56.99 190,799 $10,869,091
HXQ CN Equity Horizons NASDAQ 100 Index ETF -3.02% $43.77 18,921 $829,502
HUC CN Equity Horizons Crude Oil ETF -3.20% $10.77 141,285 $1,514,455
CCX CN Equity Auspice Canadian Crude Oil Index ETF -4.38% $7.99 136,704 $1,076,488
HMMJ CN Equity Horizons Medical Marijuana Life Sciences ETF -6.11% $8.62 1,635,191 $14,038,366

Top Performing ETFs – Financials / Bank ETFs – yes, that, I get, if indeed we are looking at that extra 25 bps come Wednesday … Golds? I don’t get nearly as much, since higher rates while benefiting banks in terms of net interest margins aren’t doing anything for gold stocks – other perhaps than reminding investors that gold generally doesn’t yield much … Base metals? A positive reflection on Global Synchronized growth for the first time since … way back!

Bottom Performing ETFs – Rare set back for Tech / NASDAQ , driven lower by the FAAMG stocks on Friday in particular, further weakness in oil – production cut extension notwithstanding (with stocks not following through as US-listed XLE popped Friday – possibly benefiting from flows out of tech)… and … some weakness in the interest sensitive/defensive areas aka utes and consumers staples. And Medical Marijuana … New high(s) at some point in the future, perhaps, but … certainly not last week…

Last week’s Sector Performance:

sector for week ending June 9, 2017

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