Red Line? (TWTW – July 24-28, 2017)

Red Line? North Korea’s continued defiance of the US – via a second ICBM launch test on Friday – is probably the last thing the US Administration needs after an overwhelming week on the Washington dysfunction front …

Skinny Healthcare: defeated, courtesy Senator John McCain striking the final blow to it; Trump’s new communications director: went on a profane language laden tirade against Chief of Staff Reince Priebus who has since resigned. AG: the object of continued Twitter attacks from President Trump extremely crossed at him for Russia recusal. More fireworks needed? Look no further than the Russians already retaliating for Congress sending the President a list of further sanctions against Russia…

Markets thus far, with the notable exception of the USD? Seemingly blissfully unaware … will that change soon?

Latest developments:

  • It’s earnings season  – (Apple reports on Tuesday) – and last week, several companies that beat saw their stock not rewarded, but hit instead. Not a great sign… Also – Amazon saw Jeff Bezos briefly had the rankings of richest man in the world, before falling back to number 2 ranking as AMZN got hit on its earnings report
  • The dominance of Facebook and Google / Alphabet – seems to increasingly be hitting the radar as far as the monopolies they represent benefiting from a network effect exceedingly hard to dislodge, ultimately raising the question as to how the power they wield can be effectively dealt with from a competitive perspective … Barron’s doesn’t see this as an immediate threat to Facebook, which they see possibly hitting $200 in a year…
  • the FED – all indications at this point are that some announcement regarding addressing the FED’s balance sheet should happen in September
  • Oil – the CEO of Royal Dutch Shell Ben Van Beurden made reference to “oil lower forever” on the Company’s latest earnings call
  • President Trump – pronounced himself happy to wait and watch Obamacare implode on its own … although what appears to be more prone to implosion in recent weeks is … his administration …
  • Barrons – carries article on Citi suggesting the stock could see $100 in the next few years – bolstered by massive share buybacks … The US weekly also likes Honeywell … and also still Facebook

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 -0.60% PXG RAFI Global Fundamental -0.32% VCN FTSE Canada All Cap Index ETF -0.26%
XIC S&P/TSX Capped Composite -0.25% PXS RAFI US Fundamental Index -0.31% VCE FTSE Canada Index ETF -0.53%
CRQ RAFI CDN Fundamental -0.13% QQC/F NASDAQ 100 CAD Hedged -0.16% VUN CRSP US Total Market Index Unhedged -0.86%
XSP S&P 500 CAD Hedged 0.00% PZC RAFI CDN Small-Mid Fundam 1.02% VSP S&P 500 CAD Hedged -0.02%
XUS S&P500 -0.80% VXC FTSE All-World Ex Canada Index ETF -0.67%
XMU MSCI Min Vol US -0.52% XXM/b Morningstar US Value (Unh) -1.47% VEF FTSE Developed ex North-Am CAD H -0.36%
CLU RAFI US Fund 1000 CAD H 0.16% YXM/b Morningstar US Momentum (Unh) -1.40% VDU FTSE Developed ex North-America -0.42%
XSU Russell 2000 CAD Hedged -0.36% FXM Morningstar CDN Value 0.00% VE FTSE Developed Europe -0.54%
XIN MSCI EAFE CAD Hedged -0.08% WXM Morningstar CDN Momentum 0.40% VA FTSE Developed Asia Pacific -0.75%
XEH MSCI Europe IMI CAD H -0.08% VXM/b Morningstar Intl Value (Unh) 0.50% VEE FTSE Emerging Mkts 0.03%
XEC MSCI EM IMI -0.43% ZXM/b Morningstar Intl Momentum (Unh) -0.40% HAZ Active Global Dividends -1.42%
XMM MSCI Min Vol Emerging -0.58% RWE MSCI Europe Low Risk Weighted (H) -1.00% HHF Morningstar Hedge Fund Index 0.00%
CWO RAFI Broad Emerging 0.61% HMF Auspice Managed Futures -2.85%
CJP RAFI Fundam Japan CAD H -0.88% ZDJ Dow Jones CAD Hedged 1.11% HAC Seasonal Rotation -0.32%
CDZ CDN Div Aristocrats -0.97% ZEQ MSCI Europe High Quality CAD H -2.15% HPR Active Preferred Shares 0.21%
week of: July 24-28, 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 -0.13% VXM/b Morningstar Intl Value (Unh) 0.50% CDZ iShares S&P/TSX Canadian Dividend Aristocrats Index ETF -0.97%
CLU RAFI US Fund 1000 CAD H 0.16% XXM/b Morningstar US Value (Unh) -1.47% XHU iShares US High Dividend Equity Index ETF -0.09%
CJP RAFI Fundam Japan CAD H -0.88% FXM Morningstar CDN Value 0.00% VGG Vanguard US Dividend Appreciation Index ETF -1.10%
CWO RAFI Broad Emerging 0.61% XCV iShares Canadian Value Index ETF 0.44% CUD iShares US Dividend Growers Index ETF CAD-Hedged -0.36%
PXG RAFI Global Fundamental -0.32% VVL Vanguard Global Value Factor Etf 0.00%
PZC RAFI CDN Small-Mid Fundam 1.02% Momentum:
YXM/b Morningstar US Momentum (Unh) -1.40%
Min Vol: ZXM/b Morningstar Intl Momentum (Unh) -0.40%
VVO Vanguard Global Minimum Volatility Etf -0.65% WXM Morningstar CDN Momentum 0.40% Multi-Factors:
XMW MSCI Min Vol World -0.53% VMO Vanguard Global Momentum Factor Etf -0.58% XFC iShares Edge MSCI Multifactor Canada Index ETF 0.09%
XMI MSCI Min Vol EAFE -0.83% Liquidity: XFS iShares Edge MSCI Multifactor USA Index ETF -1.35%
XMM MSCI Min Vol Emerging -0.58% VLQ Vanguard Global Liquidity Factor Etf 0.40% XFI iShares Edge MSCI Multifactor EAFE Index ETF -0.31%
XMU MSCI Min Vol US -0.52% Quality: Low Risk Weighted:
XMV MSCI Min Vol Canada -0.66% ZEQ BMO MSCI Europe High Quality Hedged To CAD Index ETF -2.15% RWE First Asset MSCI Europe Low Risk Weighted ETF -1.00%
week of: July 24-28, 2017 FACTORS / SMART BETA / STRATEGIC BETA Source: ETFinsight/Bloomberg

Check out the above: 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:

ticker name change ticker name change ticker name change
HGM Horizons Managed Global Opportunities ETF 0.00%
EXGG Excel Global Growth Asset Allocation Etf 0.04% HAC Horizons Seasonal Rotation ETF -0.32%
EXGB Excel Global Balanced Asset Allocation Etf -0.41% HRA Horizons Global Risk Parity ETF 0.05%
HHF Horizons Morningstar Hedge Fund Index ETF 0.00%
DWG PowerShares DWA Global Momentum Index ETF -0.89%
XTR iShares Diversified Monthly Income ETF -0.97% XGR iShares Growth Core Portfolio Builder Fund -0.54%
FIE iShares Canadian Financial Monthly Income ETF -0.83% XCR iShares Conservative Core Portfolio Builder Fund -0.81%
ZMI BMO Monthly Income ETF -0.62% XGC iShares Global Completion Portfolio Builder Fund -0.30%
CBD iShares Balanced Income CorePortfolio Index ETF -0.87% FUT First Asset US Tactical Sector Allocation Index ETF -0.13%
ETP First Trust Global Risk Managed Income Index ETF -0.67% PRP Purpose Conservative Income Fund 0.00%
CBN iShares Balanced Growth CorePortfolio Index ETF 0.25%
XAL iShares Alternatives Completion Portfolio Builder Fund -0.21%
week of: July 24-28, 2017 ETF Strategists & ETFs of ETFs Source: ETFinsight/Bloomberg

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Weekly Volumes for the week of July 24-28, 2017:

weekly volume data:
Total Volume non-leveraged $5,467,699,529
top 10 Volume non leveraged $2,709,352,430
Total Volume leveraged $1,441,155,127
top 5 Volume leveraged $955,406,862
Total Volumes overall: $6,908,854,655
Top 10 + Top 5: $3,664,759,292
top 10 non leveraged % of total nl: 49.6%
top 5 leveraged % of total leveraged 66.3%
Top 10 + Top 5 as % of total traded: 53.0%

volumes week ending july 28, 2017

iShares – Turnill: Japanese stock market has wind at its back

Vanguard –  Grim: The Factors to consider with Factor investing

Horizons – Announced it is becoming the exclusive ETF sponsor of the Toronto Raptors => click HERE!

Hamilton Capital – Actively managed approach to Global Banks and Global Financials => Click HERE!

Escott – Pref space: Still upside from here => Notes from Fiera’s Normandeau recent Prefs confcall update

First Asset – Will SID grow nicely? Sid the Kid? Sid could grow nicely … will it? click HERE to read!

WisdomTree / Questrade tie-up – Interesting development announced last Thursday, which sees WisdomTree acquire Questrades ETFs, with some $89MM of AUM, and become in effect a partner in helping the discount broker assist its clients with ETFs and ROBO aspirations – which from now on will draw on WT’s investment acumen, aside from seeing WisdomTree offered on Questrade’s platform commission-free => Read More: Click HERE!

 

Top and Bottom performing ETFs for the week of July 24-28, 2017:

Ticker Name % Change Avg Price Weekly Volume $ Volume traded
Top Performers week of Jul 24-28, 2017
CCX CN Equity Auspice Canadian Crude Oil Index ETF 9.28% $8.74 161,661 $1,429,794
XBM CN Equity iShares S&P/TSX Global Base Metals Index ETF 4.84% $11.98 140,318 $1,691,807
HUC CN Equity Horizons Crude Oil ETF 4.66% $10.60 60,508 $644,401
XEG CN Equity iShares S&P/TSX Capped Energy Index ETF 4.31% $11.17 26,312,387 $295,615,090
HXE CN Equity Horizons S&P/TSX Capped Energy Index ETF 4.25% $18.33 164,920 $3,030,542
ZMT CN Equity BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF 3.24% $10.75 68,479 $735,266
HMMJ CN Equity Horizons Marijuana Life Sciences Index ETF 3.05% $9.37 1,036,145 $9,722,856
CBQ CN Equity iShares BRIC Index ETF 2.56% $24.07 392,452 $9,430,177
ZJO CN Equity BMO Junior Oil Index ETF 2.21% $11.95 91,277 $1,106,370
HEP CN Equity Horizons Enhanced Income Gold Producers ETF 1.57% $24.20 53,533 $1,292,742
Bottom Performers
ZWE CN Equity BMO Europe High Dividend Covered Call Hedged to CAD ETF -1.82% $21.82 1,138,940 $24,840,316
FHQ CN Equity First Trust AlphaDEX US Technology Sector Index ETF -2.10% $28.47 80,988 $2,313,576
ZEQ CN Equity BMO MSCI Europe High Quality Hedged To CAD Index ETF -2.15% $19.76 407,478 $8,033,641
HHL/U CN Equity Healthcare Leaders Income ETF -2.52% $8.62 59,191 $509,023
ZLC CN Equity BMO Long Corporate Bond Index ETF -2.89% $18.38 184,087 $3,374,984
VLB CN Equity Vanguard Canadian Long-Term Bond Index ETF -3.03% $25.61 18,701 $480,079
XLB CN Equity iShares Core Canadian Long Term Bond Index ETF -3.08% $23.62 533,680 $12,622,673
ZFL CN Equity BMO Long Federal Bond Index ETF -3.13% $17.28 161,032 $2,781,086
PGL CN Equity PowerShares Ultra Liquid Long Term Government Bond Index ETF -3.16% $22.73 404,544 $9,114,964
ZPL CN Equity BMO Long Provincial Bond Index ETF -3.22% $15.60 102,980 $1,605,769

Top Performing ETFs – Seeing oil and related energy ETFs rebound: a relief to many … Will it be sustained? Or will renewed weakness materialize?

Bottom Performing ETFs – Long Bond ETFs pulling back – a reappraisal of the outlook for inflation? Or – a perhaps somewhat surprising removal of a black swans hedge- as despite greater interest rates risk, for some time, buyers of long dated bonds have looked to them simply for their ability to rise when equities experience stress?

Last week’s Sector Performance:

Dominated by Energy – enjoying renewed strength in WTI on the notion that Saudi Arabia will get OPEC discipline, respectively deal with overproduction itself, OR, in the end result, that one way or another, demand will chip away at the inventory overhang. As for the shale element, it continues to put OPEC in a box – the conundrum of reining in production to boost prices, thereby bringing renewed US shale production back online faster, respectively not reining in production, and doing itself in in terms of price realization …

sector performance week ending july 28, 2017

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