Fire and Fury – Locked and Loaded … the rhetoric heated up significantly this past week, with President Trump signalling he wouldn’t tolerate North Korea making threats against US territory. Not to be outdone (do we really need that? isn’t one potentially trigger happy leader enough?), North Korea’s leader Kim Jong Un responded by threatening Guam, where the US maintains a massive airbase home to B-1B nuclear capable bombers, which it deems a threat due to their frequent incursion in Korea’s airspace …
- DoubleLine’s Jeffery Grundlach – Warns of overvaluation in Junk bonds and EM debt. “If you are waiting for a catalyst, you will be selling at lower prices” – by week’s end, this looked rather prescient…
- Inflation – or continued lack thereof a problem … not just in Canada, but also in the US.
- Bridgewater Associates Founder Ray Dalio – Recommends investors allocate 5-10% to Gold in light of rising geopolitical tensions between US and N-Korea => Click HERE!
“Two confrontational, nationalistic, and militaristic leaders playing chicken with each other, while the world is watching to see which one will be caught bluffing, or if there will be a hellacious war,” Dalio wrote.
- Ten Years after … The onset of what would turn into the 2008/2009 Global Financial crisis crossed its 10th anniversary (the ECB extended emergency loans to banks on Aug 9, 2007), and in Canada, the ABCP market froze …
- South Korea and Japan – warned North Korea against making good on its threat to fire missiles at Guam, while China expressed hopes that more would be done to alleviate the “tense situation and enhance mutual trust”. Presumably not “banking on that …” Japan has begun preparations to deploy Patriot Interceptors in Western regions – along the flight path of any missiles aimed toward Guam…
- Valeant Pharma – Got hit following lowered revenue guidance for the year.
Latest market numbers as seen through ETFs providing exposure to the most commonly referred to benchmarks:
|XIU||S&P/TSX 60||-1.52%||PXG||RAFI Global Fundamental||-0.64%||VCN||FTSE Canada All Cap Index ETF||-1.46%|
|XIC||S&P/TSX Capped Composite||-1.45%||PXS||RAFI US Fundamental Index||-1.42%||VCE||FTSE Canada Index ETF||-1.42%|
|CRQ||RAFI CDN Fundamental||-1.67%||QQC/F||NASDAQ 100 CAD Hedged||-1.07%||VUN||CRSP US Total Market Index Unhedged||-1.19%|
|XSP||S&P 500 CAD Hedged||-1.35%||PZC||RAFI CDN Small-Mid Fundam||-0.40%||VSP||S&P 500 CAD Hedged||-1.35%|
|XUS||S&P500||-1.05%||VXC||FTSE All-World Ex Canada Index ETF||-1.64%|
|XMU||MSCI Min Vol US||-0.35%||XXM/b||Morningstar US Value (Unh)||-2.85%||VEF||FTSE Developed ex North-Am CAD H||-2.55%|
|CLU||RAFI US Fund 1000 CAD H||-1.54%||YXM/b||Morningstar US Momentum (Unh)||-0.32%||VDU||FTSE Developed ex North-America||-1.80%|
|XSU||Russell 2000 CAD Hedged||-2.69%||FXM||Morningstar CDN Value||-0.91%||VE||FTSE Developed Europe||-2.00%|
|XIN||MSCI EAFE CAD Hedged||-2.71%||WXM||Morningstar CDN Momentum||-1.39%||VA||FTSE Developed Asia Pacific||-1.51%|
|XEH||MSCI Europe IMI CAD H||-2.76%||VXM/b||Morningstar Intl Value (Unh)||-0.67%||VEE||FTSE Emerging Mkts||-1.73%|
|XEC||MSCI EM IMI||-2.07%||ZXM/b||Morningstar Intl Momentum (Unh)||-0.04%||HAZ||Active Global Dividends||-0.70%|
|XMM||MSCI Min Vol Emerging||-1.14%||RWE||MSCI Europe Low Risk Weighted (H)||-1.84%||HHF||Morningstar Hedge Fund Index||-0.50%|
|CWO||RAFI Broad Emerging||-1.39%||HMF||Auspice Managed Futures||0.73%|
|CJP||RAFI Fundam Japan CAD H||-2.49%||ZDJ||Dow Jones CAD Hedged||-0.85%||HAC||Seasonal Rotation||0.38%|
|CDZ||CDN Div Aristocrats||-1.20%||ZEQ||MSCI Europe High Quality CAD H||-1.56%||HPR||Active Preferred Shares||-1.79%|
|week of:||Aug 7 – 11, 2017||OVERALL||Source:||ETFinsight/Bloomberg|
Respectively through available “FACTORS” (Smart or Strategic Beta) ETFs:
|CRQ||RAFI CDN Fundamental||-1.67%||VXM/b||Morningstar Intl Value (Unh)||-0.67%||CDZ||iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||-1.20%|
|CLU||RAFI US Fund 1000 CAD H||-1.54%||XXM/b||Morningstar US Value (Unh)||-2.85%||XHU||iShares US High Dividend Equity Index ETF||-0.50%|
|CJP||RAFI Fundam Japan CAD H||-2.49%||FXM||Morningstar CDN Value||-0.91%||VGG||Vanguard US Dividend Appreciation Index ETF||-0.42%|
|CWO||RAFI Broad Emerging||-1.39%||XCV||iShares Canadian Value Index ETF||-1.58%||CUD||iShares US Dividend Growers Index ETF CAD-Hedged||-1.82%|
|PXG||RAFI Global Fundamental||-0.64%||VVL||Vanguard Global Value Factor Etf||-2.43%|
|PZC||RAFI CDN Small-Mid Fundam||-0.40%||Momentum:|
|YXM/b||Morningstar US Momentum (Unh)||-0.32%|
|Min Vol:||ZXM/b||Morningstar Intl Momentum (Unh)||-0.04%|
|VVO||Vanguard Global Minimum Volatility Etf||-1.20%||WXM||Morningstar CDN Momentum||-1.39%||Multi-Factors:|
|XMW||MSCI Min Vol World||-0.19%||VMO||Vanguard Global Momentum Factor Etf||-2.00%||XFC||iShares Edge MSCI Multifactor Canada Index ETF||-1.53%|
|XMI||MSCI Min Vol EAFE||-1.10%||Liquidity:||XFS||iShares Edge MSCI Multifactor USA Index ETF||-1.10%|
|XMM||MSCI Min Vol Emerging||-1.14%||VLQ||Vanguard Global Liquidity Factor Etf||-1.55%||XFI||iShares Edge MSCI Multifactor EAFE Index ETF||-0.22%|
|XMU||MSCI Min Vol US||-0.35%||Quality:||Low Risk Weighted:|
|XMV||MSCI Min Vol Canada||-1.32%||ZEQ||BMO MSCI Europe High Quality Hedged To CAD Index ETF||-1.56%||RWE||First Asset MSCI Europe Low Risk Weighted ETF||-1.84%|
|week of:||Aug 7 – 11, 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:
|HGM||Horizons Managed Global Opportunities ETF||-0.09%|
|EXGG||Excel Global Growth Asset Allocation Etf||-0.66%||HAC||Horizons Seasonal Rotation ETF||0.38%|
|EXGB||Excel Global Balanced Asset Allocation Etf||-0.41%||HRA||Horizons Global Risk Parity ETF||-0.50%|
|HHF||Horizons Morningstar Hedge Fund Index ETF||-0.50%|
|DWG||PowerShares DWA Global Momentum Index ETF||-1.35%|
|XTR||iShares Diversified Monthly Income ETF||-0.88%||XGR||iShares Growth Core Portfolio Builder Fund||-0.32%|
|FIE||iShares Canadian Financial Monthly Income ETF||-1.66%||XCR||iShares Conservative Core Portfolio Builder Fund||-0.34%|
|ZMI||BMO Monthly Income ETF||-0.68%||XGC||iShares Global Completion Portfolio Builder Fund||-0.82%|
|CBD||iShares Balanced Income CorePortfolio Index ETF||-0.96%||FUT||First Asset US Tactical Sector Allocation Index ETF||-1.08%|
|ETP||First Trust Global Risk Managed Income Index ETF||-0.31%||PRP||#N/A||#N/A|
|CBN||iShares Balanced Growth CorePortfolio Index ETF||-1.63%|
|XAL||iShares Alternatives Completion Portfolio Builder Fund||-0.64%|
|week of:||Aug 7 – 11, 2017||ETF Strategists & ETFs of ETFs||Source:||ETFinsight/Bloomberg|
Brought to you by:
iShares: Koesterich: Why investors are ignoring political dysfunction – for Now
Vanguard: 5 questions for Vanguard new CIO => Click HERE!
BMO ETFs: Dashboard as at July 31, 2017 => click HERE!
Announcement regarding Index Changes for 5 BMO ETFs => click HERE!
Horizons ETFs: Thackray’s Newsletter for August 2017: Risk still Exists … => click HERE!
WisdomTree: Adds “non-hedged” to European solutions toolkit => Click HERE!
First Asset – Sentry Select doesn’t have ETFs … but with CI Financial acquiring Sentry for $780MM in the quiet of summer … indirectly Sentry now does … have ETFs: First Asset’s!
and First Asset has got another avenue for AUM growth…
Will other Closed End fund shops be swallowed up? Will more conversions from CEFs to ETFs take place? If that were the case, it wouldn’t be too surprising – would it?
ETFinsight – Performance Highlights to Jul 31, 2017 => Click HERE!
Weekly Volumes History to August 11, 2017:
Top and Bottom performing ETFs for the week of Aug 7-11, 2017:
|Ticker||Name||% Change||Avg Price||Weekly Volume||$ Volume traded|
|Top Performers||week of||Aug 7-11, 2017|
|HUV CN Equity||BetaPro S&P 500 VIX Short-Term Futures ETF||23.18%||$8.61||655,825||$5,772,796|
|ZJG CN Equity||BMO Junior Gold Index ETF||4.74%||$8.40||381,961||$3,209,175|
|SVR CN Equity||iShares Silver Bullion ETF||4.58%||$9.20||64,166||$591,171|
|HEP CN Equity||Horizons Enhanced Income Gold Producers ETF||4.19%||$24.56||41,821||$1,032,108|
|ZGD CN Equity||BMO S&P/TSX Equal Weight Global Gold Index ETF||4.00%||$9.41||138,885||$1,323,132|
|XGD CN Equity||iShares S&P/TSX Global Gold Index ETF||3.49%||$12.22||6,726,872||$82,634,962|
|HUG CN Equity||Horizons Gold ETF||2.67%||$11.75||862,447||$10,251,987|
|CGL CN Equity||iShares Gold Bullion ETF||2.65%||$11.08||1,071,800||$11,947,412|
|CGL/C CN Equity||iShares Gold Bullion ETF||2.63%||$14.24||35,038||$500,757|
|ZRR CN Equity||BMO Real Return Bond Index ETF||1.89%||$17.14||131,121||$2,237,955|
|EHE CN Equity||Wisdomtree Europe Hedged Equity Index ETF||-2.97%||$24.92||363,460||$9,189,865|
|FHB CN Equity||First Asset European Bank ETF||-3.12%||$9.49||700,518||$6,702,086|
|ZEO CN Equity||BMO S&P/TSX Equal Weight Oil & Gas Index ETF||-3.15%||$10.33||1,921,291||$19,914,175|
|XIT CN Equity||iShares S&P/TSX Capped Information Technology Index ETF||-3.84%||$14.72||197,806||$2,874,096|
|ZBK CN Equity||BMO Equal Weight US Banks Index ETF||-3.87%||$23.67||250,718||$5,939,262|
|ZID CN Equity||BMO India Equity Index ETF||-4.00%||$22.63||180,589||$4,126,775|
|ZUB CN Equity||BMO Equal Weight US Banks Hedged to CAD Index ETF||-4.06%||$26.38||623,078||$16,503,069|
|XID CN Equity||iShares India Index ETF||-4.15%||$34.15||52,256||$1,776,982|
|ZJO CN Equity||BMO Junior Oil Index ETF||-4.70%||$11.33||26,628||$303,177|
|HMMJ CN Equity||Horizons Marijuana Life Sciences Index ETF||-6.48%||$8.74||633,770||$5,557,055|
Top Performing ETFs – And just as apparently some were returning to the being long the Inverse Volatility tools … Vol spiked rather spectacularly, courtesy heated rhetoric between the US and N-Korea. On the volume-front, the 2X Bull+ on the short term VIX led the leveraged ETFs trading volumes by a wide margin, while oil on the week remained relatively close to where it left off a week prior. As for Ray Dalio’s comment above – looking at the week’s top performers, they all – save for HUV and ZRR – have one thing in common: Gold. Will that continue?
Bottom Performing ETFs –Uncertainty on the Cannabis front, with the TMX’s Canada Depositary for Securities examining the subject of risks associated with settling trades in the burgeoning sector didn’t do HMMJ any favor this past week. The fear relates to Canadian listed stocks in the space with US operations, and what would happen, should the “Cole Memorandum” that has thus far dictated the relationship between the US Feds and individual States no longer prevails …
Elsewhere, evidently the prior week’s enthusiasm for US Bank stocks (in the wake of a stronger NFP print) has receeded this week, alongside prices in Energy stock ETFs. Will that prove temporary? Or is the lack of sufficient inflation – translating into reduced odds of further rake hikes – going to remain too much of a headwind for now for the “expanding NIM (Net Interest Margin) trade?
Last week’s Sector Performance: