O’Canada – … And against the backdrop of a sharply ascending Loonie in June (+4.2% m/o/m vs the USD), Canada celebrates its 150th Birthday, eagerly anticipating what H2, 2017 will bring … which according to rising odds, first off entails a rate hike by the Bank of Canada.
This is a remarkable turn of events relative to previous expectations which had the Bank on hold for pretty much another year … Will Oil, which has had a rather painful June change the picture embraced by pundits, including David Rosenberg at Gluskin – that of an economy firming up further, respectively a domestic stock market poised to play catch-up?
And … Well said Bono: click HERE!
- Oil – Are oil prices under pressure a threat to the earnings outlook?
- Rates – Respectively is the fact that the yield curve has flattened a fair bit a concern regarding the growth outlook?
- Activism – Targeted by an activist US shareholder, Nestle enacts massive share buyback ($27.4 Billion)
- Regulatory – RBC will repay $21.8 Million to clients, in a no-contest settlement with the OSC, related to what amounts to double-dipping on fees
- Crisis – Never again? “Would I say there will never, ever be another financial crisis? That would be going too far, but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will be”. FED Chair Janet Yellen, speaking to risks of seeing a repeat of 2007-2009 Global Financial crisis.
- Fine – EURO 2.42 Billion – the amount Google is being fined in Europe in relation to competition (or anti, rather) issues…
- Healthy US Financials – 33 out of 34 banks – stress-tested in the US passed, leaving room for dividend increases, share buybacks, etc
- Trade War? Postponed to Sept 25th – preliminary determination in case of Boeing versus Bombardier, arguing the latter has effectively dumped C Series in the US, damaging Boeing’s business.
- Rate hike – Sharp rise (from 70-84) – in the odds of seeing BoC Governor Stephen Poloz and his crew raise rates in July.
- ETFs in Canada – AUM nearing CAD 131Billion, despite CAD strength as headwind for foreign exposure, with strong net inflows (+$3.1 Billion) overcoming negative market impact (-$1.85Billion) to contribute +$1.25 Billion to growth in the industry for June.
Latest market numbers as seen through ETFs providing exposure to the most commonly referred to benchmarks:
|XIU||S&P/TSX 60||-0.83%||PXG||RAFI Global Fundamental||-0.63%||VCN||FTSE Canada All Cap Index ETF||-0.71%|
|XIC||S&P/TSX Capped Composite||-0.78%||PXS||RAFI US Fundamental Index||-2.26%||VCE||FTSE Canada Index ETF||-0.65%|
|CRQ||RAFI CDN Fundamental||-0.27%||QQC/F||NASDAQ 100 CAD Hedged||-2.63%||VUN||CRSP US Total Market Index Unhedged||-2.71%|
|XSP||S&P 500 CAD Hedged||-0.65%||PZC||RAFI CDN Small-Mid Fundam||1.64%||VSP||S&P 500 CAD Hedged||-0.53%|
|XUS||S&P500||-2.90%||VXC||FTSE All-World Ex Canada Index ETF||-2.42%|
|XMU||MSCI Min Vol US||-3.23%||XXM/b||Morningstar US Value (Unh)||-1.72%||VEF||FTSE Developed ex North-Am CAD H||-0.86%|
|CLU||RAFI US Fund 1000 CAD H||0.39%||YXM/b||Morningstar US Momentum (Unh)||-2.60%||VDU||FTSE Developed ex North-America||-1.98%|
|XSU||Russell 2000 CAD Hedged||-0.03%||FXM||Morningstar CDN Value||0.71%||VE||FTSE Developed Europe||-1.81%|
|XIN||MSCI EAFE CAD Hedged||-1.11%||WXM||Morningstar CDN Momentum||-1.13%||VA||FTSE Developed Asia Pacific||-2.33%|
|XEH||MSCI Europe IMI CAD H||-1.41%||VXM/b||Morningstar Intl Value (Unh)||-0.98%||VEE||FTSE Emerging Mkts||-2.12%|
|XEC||MSCI EM IMI||-2.39%||ZXM/b||Morningstar Intl Momentum (Unh)||-2.66%||HAZ||Active Global Dividends||-2.90%|
|XMM||MSCI Min Vol Emerging||-2.24%||RWE||MSCI Europe Low Risk Weighted (H)||-2.57%||HHF||Morningstar Hedge Fund Index||-1.96%|
|CWO||RAFI Broad Emerging||-1.59%||HMF||Auspice Managed Futures||-3.70%|
|CJP||RAFI Fundam Japan CAD H||0.75%||ZDJ||Dow Jones CAD Hedged||-0.68%||HAC||Seasonal Rotation||-0.64%|
|CDZ||CDN Div Aristocrats||-0.04%||ZEQ||MSCI Europe High Quality CAD H||-2.82%||HPR||Active Preferred Shares||0.32%|
|week of:||June 26-30, 2017||OVERALL||Source:||ETFinsight/Bloomberg|
Respectively through available “FACTORS” (Smart or Strategic Beta) ETFs:
|CRQ||RAFI CDN Fundamental||-0.27%||VXM/b||Morningstar Intl Value (Unh)||-0.98%||CDZ||iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||-0.04%|
|CLU||RAFI US Fund 1000 CAD H||0.39%||XXM/b||Morningstar US Value (Unh)||-1.72%||XHU||iShares US High Dividend Equity Index ETF||-3.55%|
|CJP||RAFI Fundam Japan CAD H||0.75%||FXM||Morningstar CDN Value||0.71%||VGG||Vanguard US Dividend Appreciation Index ETF||-2.22%|
|CWO||RAFI Broad Emerging||-1.59%||XCV||iShares Canadian Value Index ETF||-0.77%||CUD||iShares US Dividend Growers Index ETF CAD-Hedged||-0.10%|
|PXG||RAFI Global Fundamental||-0.63%||VVL||Vanguard Global Value Factor Etf||-0.16%|
|PZC||RAFI CDN Small-Mid Fundam||1.64%||Momentum:|
|YXM/b||Morningstar US Momentum (Unh)||-2.60%|
|Min Vol:||ZXM/b||Morningstar Intl Momentum (Unh)||-2.66%|
|VVO||Vanguard Global Minimum Volatility Etf||-0.41%||WXM||Morningstar CDN Momentum||-1.13%||Multi-Factors:|
|XMW||MSCI Min Vol World||-3.45%||VMO||Vanguard Global Momentum Factor Etf||-2.47%||XFC||iShares Edge MSCI Multifactor Canada Index ETF||-0.30%|
|XMI||MSCI Min Vol EAFE||-2.99%||Liquidity:||XFS||iShares Edge MSCI Multifactor USA Index ETF||-1.18%|
|XMM||MSCI Min Vol Emerging||-2.24%||VLQ||Vanguard Global Liquidity Factor Etf||-1.68%||XFI||iShares Edge MSCI Multifactor EAFE Index ETF||-1.89%|
|XMU||MSCI Min Vol US||-3.23%||Quality:||Low Risk Weighted:|
|XMV||MSCI Min Vol Canada||-0.90%||ZEQ||BMO MSCI Europe High Quality Hedged To CAD Index ETF||-2.82%||RWE||First Asset MSCI Europe Low Risk Weighted ETF||-2.57%|
|week of:||June 26-30, 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 table below – which captures the latest as far as weekly performance for ETFs managed by Strategists, respectively wrapping several ETFs in one to solve for Conservative, Balanced, or Growth objectives:
|HGM||Horizons Managed Global Opportunities ETF||-2.96%|
|EXGG||Excel Global Growth Asset Allocation Etf||-2.13%||HAC||Horizons Seasonal Rotation ETF||-0.64%|
|EXGB||Excel Global Balanced Asset Allocation Etf||-1.97%||HRA||Horizons Global Risk Parity ETF||-1.48%|
|HHF||Horizons Morningstar Hedge Fund Index ETF||-1.96%|
|DWG||PowerShares DWA Global Momentum Index ETF||-2.60%|
|HMA||Horizons Managed Multi-Asset Momentum ETF||-1.91%|
|XTR||iShares Diversified Monthly Income ETF||-0.44%||XGR||iShares Growth Core Portfolio Builder Fund||-1.16%|
|FIE||iShares Canadian Financial Monthly Income ETF||0.28%||XCR||iShares Conservative Core Portfolio Builder Fund||-1.92%|
|ZMI||BMO Monthly Income ETF||-1.45%||XGC||iShares Global Completion Portfolio Builder Fund||-1.11%|
|CBD||iShares Balanced Income CorePortfolio Index ETF||-0.90%||FUT||First Asset US Tactical Sector Allocation Index ETF||-1.89%|
|ETP||First Trust Global Risk Managed Income Index ETF||-0.81%||PRP||Purpose Conservative Income Fund||-1.21%|
|CBN||iShares Balanced Growth CorePortfolio Index ETF||-0.74%|
|XAL||iShares Alternatives Completion Portfolio Builder Fund||-1.09%|
|week of:||June 26-30, 2017||ETF Strategists & ETFs of ETFs||Source:||ETFinsight/Bloomberg|
Brought to you by:
Weekly Volumes for the week of June 26-30, 2017:
|weekly volume data:|
|Total Volume non-leveraged||$6,854,205,268|
|top 10 Volume non leveraged||$3,324,087,564|
|Total Volume leveraged||$1,705,053,754|
|top 5 Volume leveraged||$1,147,992,880|
|Total Volumes overall:||$8,559,259,022|
|Top 10 + Top 5:||$4,472,080,444|
|top 10 non leveraged % of total nl:||48.5%|
|top 5 leveraged % of total leveraged||67.3%|
|Top 10 + Top 5 as % of total traded:||52.2%|
iShares – Tucker: A few Reasons why many Financial Advisors love Bond ETFs.
Vanguard – Analysis of Dividend-oriented strategies
First Asset – the A Series reaching their due date fairly soon … see earlier press release (July 14th, 2007 targeted end date) => Click HERE
Horizons – HMMJ – confcall with Steven Hawkins: some notes from Caroline => Click HERE!
ETFinsight – “Wisdom Tree: Moving away from … “ : More “Smart Beta” solutions for fixed income, at an aggressive price point which may explain the recent drop seen in XBB and XSB’s Management fees …
Aside from this, in terms of discussion with Kurt MacAlpine (head of global distribution for WisdomTree) – as WisdomTree nears the one year mark of their arrival in Canada – lots of ground work laid in terms of putting in place the necessary resources to support the strong growth his firm anticipates seeing here in Canada, with CRM2 amongst items noted as catalysts. Of interest for those looking at the currency-hedged versus unhedged side of the equation – WisdomTree has the next Gen version of what could be useful to you: Variably Hedged. What does that mean? A more dynamic element ie not a buy hedged or unhedged and forget about it, but rather an ETF where that decision to hedge or not is part of what the provider brings to you.
Evolve – preparing to enter an increasingly crowded ETF industry in our Great White North … For Globe and Mail article on Raj Lala’s latest venture, respectively comeback to the ETF space => Click HERE!
Top and Bottom performing ETFs for the week of June 26-30, 2017:
|Ticker||Name||% Change||Avg Price||Weekly Volume||$ Volume traded|
|Top Performers||week of||June 26-30, 2017|
|CCX CN Equity||Auspice Canadian Crude Oil Index ETF||10.24%||$7.72||72,721||$570,370|
|HUC CN Equity||Horizons Crude Oil ETF||5.82%||$10.21||74,674||$763,966|
|ZUB CN Equity||BMO Equal Weight US Banks Hedged to CAD Index ETF||4.03%||$25.84||1,191,212||$30,915,633|
|ZMT CN Equity||BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF||3.52%||$9.54||106,025||$999,893|
|ZIC CN Equity||BMO Mid-Term US IG Corporate Bond Index ETF||2.52%||$19.15||1,920,938||$37,253,712|
|BANK CN Equity||BMO Global Bank Hedged to CAD Index ETF||2.31%||$20.22||36,073||$735,335|
|XBM CN Equity||iShares S&P/TSX Global Base Metals Index ETF||2.07%||$10.75||88,238||$948,542|
|HBG CN Equity||Hamilton Capital Global Bank ETF||2.06%||$21.07||35,539||$748,270|
|ZJO CN Equity||BMO Junior Oil Index ETF||1.94%||$11.96||110,362||$1,315,424|
|ZBK CN Equity||BMO Equal Weight US Banks Index ETF||1.90%||$23.92||369,508||$8,877,980|
|XIT CN Equity||iShares S&P/TSX Capped Information Technology Index ETF||-4.10%||$15.26||291,935||$4,401,767|
|ZLI CN Equity||BMO Low Volatility International Equity ETF||-4.37%||$23.27||181,712||$4,182,393|
|HXQ CN Equity||Horizons NASDAQ 100 Index ETF||-4.39%||$41.62||8,802||$366,534|
|HMMJ CN Equity||Horizons Marijuana Life Sciences Index ETF||-4.63%||$8.63||696,217||$6,039,277|
|ZGD CN Equity||BMO S&P/TSX Equal Weight Global Gold Index ETF||-4.83%||$9.89||209,924||$2,105,793|
|FHQ CN Equity||First Trust AlphaDEX US Technology Sector Index ETF||-4.99%||$28.84||21,431||$620,633|
|MXF CN Equity||First Asset Can-Materials Covered Call ETF||-5.02%||$14.29||12,340||$174,409|
|HEP CN Equity||Horizons Enhanced Income Gold Producers ETF||-5.33%||$24.81||48,858||$1,215,255|
|FHU CN Equity||First Trust AlphaDEX US Utilities Sector Index ETF||-5.41%||$24.60||1,601||$39,608|
|XGD CN Equity||iShares S&P/TSX Global Gold Index ETF||-5.73%||$12.51||6,750,671||$84,359,100|
Top Performing ETFs – Decent gains in CCX, as oil capped an otherwise difficult period with a rebound. For the rest, US banks (better if hedged when CAD rises … ie ZUB outperforming ZBK) doing their on again off again performance gig – this time on the + side, likely hardened by the combination of passing stress tests, respectively rising rates …
Bottom Performing ETFs – On the Flipside, if unhedged CAD for Technology … losses look worse than they really were … and notably, several factors and sectors ETFs also saw their weekly performance detrimentally impacted by the Loonie’s new found strength…
Last week’s Sector Performance: