Tantrums no more? And much as earlier guided toward, the FED’s latest pronouncements at the conclusion of their most recent FOMC meeting pointed to another quarter point hike in 2017, and the onset of the FED’s balance sheet unwind – beginning in October. That, and oh, the dot plot of what to expect in terms of further guidance from here on FED Funds rates pointing to a further 3/4 points increases for 2018. All good … So far … and no tantrum (yet?). Will that change? Or will investors continue to display a teflon like ability to not let anything stick as far as what might otherwise get them unhinged? With markets at or close to all-time highs … no glitch would be wonderful, but perhaps also too much to ask – no?
- S&P – Cut China’s credit rating for first time since 1999 on debt concerns
- S&P500 – Put to Call Ratio apparently at highest level in 2 years, pointing to some discomfort regarding the potential for a correction (Puts provide protection by allowing one to sell at a pre-specified strike price, in exchange for the premium being paid for the option)
- 22 (!) Years After – a landmark report by Glorianne Stromberg, the OSC is still discussing with the industry the issue of embedded (trailer fees) compensation – pointing out that the status quo on that front is no longer a viable alternative. A decision on what is to come of it, and what the way forward looks like in terms of industry compensation will be communicated in the first part of 2018 (23 years then … to put this issue to bed? and by then, an industry that is certainly doing its part in bringing transparency and alternative investment access – the ETF industry, will reach it 28th birthday …).
- Raj Lala’s Evolve Funds – Launched this past week, starting off with a CYBER security ETF, as well as a Gender Diversity ETF (CYBR, respectively HERS are the tickers). Bottom line: Attractive Thematic, talking of which … Raj also filed for a Bitcoin ETF (must not see eye to eye with JPMorgan’s Jamie Dimon …).
- RBC GAM ETFs – Just like that, with the launch this past week of an additional 7 ETFs, became the NEO Exchange biggest ETF sponsor in terms of ETFs listed on that venue.
- WisdomTree Canada – Rounds out its offering by launching an additional 3 ETFs => Click HERE!
Latest market numbers as seen through ETFs providing exposure to the most commonly referred to benchmarks:
|XIU||S&P/TSX 60||1.94%||PXG||RAFI Global Fundamental||1.91%||VCN||FTSE Canada All Cap Index ETF||1.33%|
|XIC||S&P/TSX Capped Composite||1.87%||PXS||RAFI US Fundamental Index||1.73%||VCE||FTSE Canada Index ETF||1.37%|
|CRQ||RAFI CDN Fundamental||2.36%||QQC/F||NASDAQ 100 CAD Hedged||-0.87%||VUN||CRSP US Total Market Index Unhedged||1.15%|
|XSP||S&P 500 CAD Hedged||0.06%||PZC||RAFI CDN Small-Mid Fundam||#N/A||VSP||S&P 500 CAD Hedged||-0.34%|
|XUS||S&P500||1.44%||VXC||FTSE All-World Ex Canada Index ETF||0.95%|
|XMU||MSCI Min Vol US||0.62%||XXM/b||Morningstar US Value (Unh)||2.40%||VEF||FTSE Developed ex North-Am CAD H||0.71%|
|CLU||RAFI US Fund 1000 CAD H||0.67%||YXM/b||Morningstar US Momentum (Unh)||2.75%||VDU||FTSE Developed ex North-America||1.39%|
|XSU||Russell 2000 CAD Hedged||1.34%||FXM||Morningstar CDN Value||1.43%||VE||FTSE Developed Europe||1.91%|
|XIN||MSCI EAFE CAD Hedged||1.03%||WXM||Morningstar CDN Momentum||1.69%||VA||FTSE Developed Asia Pacific||0.73%|
|XEH||MSCI Europe IMI CAD H||0.95%||VXM/b||Morningstar Intl Value (Unh)||1.83%||VEE||FTSE Emerging Mkts||-0.64%|
|XEC||MSCI EM IMI||0.73%||ZXM/b||Morningstar Intl Momentum (Unh)||1.63%||HAZ||Active Global Dividends||1.64%|
|XMM||MSCI Min Vol Emerging||1.08%||RWE||MSCI Europe Low Risk Weighted (H)||0.20%||HHF||Morningstar Hedge Fund Index||-0.21%|
|CWO||RAFI Broad Emerging||1.33%||HMF||Auspice Managed Futures||0.24%|
|CJP||RAFI Fundam Japan CAD H||1.74%||ZDJ||Dow Jones CAD Hedged||0.42%||HAC||Seasonal Rotation||-0.49%|
|CDZ||CDN Div Aristocrats||1.17%||ZEQ||MSCI Europe High Quality CAD H||0.70%||HPR||Active Preferred Shares||0.64%|
|week of:||Sept 18-22, 2017||OVERALL||Source:||ETFinsight/Bloomberg|
Respectively through available “FACTORS” (Smart or Strategic Beta) ETFs:
|CRQ||RAFI CDN Fundamental||2.36%||VXM/b||Morningstar Intl Value (Unh)||1.83%||CDZ||iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||1.17%|
|CLU||RAFI US Fund 1000 CAD H||0.67%||XXM/b||Morningstar US Value (Unh)||2.40%||XHU||iShares US High Dividend Equity Index ETF||1.92%|
|CJP||RAFI Fundam Japan CAD H||1.74%||FXM||Morningstar CDN Value||1.43%||VGG||Vanguard US Dividend Appreciation Index ETF||0.76%|
|CWO||RAFI Broad Emerging||1.33%||XCV||iShares Canadian Value Index ETF||2.25%||CUD||iShares US Dividend Growers Index ETF CAD-Hedged||0.08%|
|PXG||RAFI Global Fundamental||1.91%||VVL||Vanguard Global Value Factor Etf||2.47%|
|PZC||RAFI CDN Small-Mid Fundam||#N/A||Momentum:|
|YXM/b||Morningstar US Momentum (Unh)||2.75%|
|Min Vol:||ZXM/b||Morningstar Intl Momentum (Unh)||1.63%|
|VVO||Vanguard Global Minimum Volatility Etf||0.41%||WXM||Morningstar CDN Momentum||1.69%||Multi-Factors:|
|XMW||MSCI Min Vol World||0.53%||VMO||Vanguard Global Momentum Factor Etf||1.65%||XFC||iShares Edge MSCI Multifactor Canada Index ETF||1.83%|
|XMI||MSCI Min Vol EAFE||0.93%||Liquidity:||XFS||iShares Edge MSCI Multifactor USA Index ETF||1.72%|
|XMM||MSCI Min Vol Emerging||1.08%||VLQ||Vanguard Global Liquidity Factor Etf||1.97%||XFI||iShares Edge MSCI Multifactor EAFE Index ETF||1.91%|
|XMU||MSCI Min Vol US||0.62%||Quality:||Low Risk Weighted:|
|XMV||MSCI Min Vol Canada||1.41%||ZEQ||BMO MSCI Europe High Quality Hedged To CAD Index ETF||0.70%||RWE||First Asset MSCI Europe Low Risk Weighted ETF||0.20%|
|week of:||Sept 18-22, 2017||FACTORS / SMART BETA / STRATEGIC BETA||Source:||ETFinsight/Bloomberg|
Factors, Factors, and more Factors – including Multi Factors, and Single Factors on a Global basis.
Active, you say? – See below, which captures weekly performance for ETFs managed by Strategists, or wraps incorporating several ETFs into one to solve for Conservative, Balanced, or Growth objectives:
|HGM||Horizons Managed Global Opportunities ETF||0.95%|
|EXGG||Excel Global Growth Asset Allocation Etf||0.50%||HAC||Horizons Seasonal Rotation ETF||-0.49%|
|EXGB||Excel Global Balanced Asset Allocation Etf||0.21%||HRA||Horizons Global Risk Parity ETF||-0.30%|
|HHF||Horizons Morningstar Hedge Fund Index ETF||-0.21%|
|DWG||PowerShares DWA Global Momentum Index ETF||1.55%|
|XTR||iShares Diversified Monthly Income ETF||0.53%||XGR||iShares Growth Core Portfolio Builder Fund||0.14%|
|FIE||iShares Canadian Financial Monthly Income ETF||1.82%||XCR||iShares Conservative Core Portfolio Builder Fund||0.26%|
|ZMI||BMO Monthly Income ETF||0.63%||XGC||iShares Global Completion Portfolio Builder Fund||0.33%|
|CBD||iShares Balanced Income CorePortfolio Index ETF||0.46%||FUT||First Asset US Tactical Sector Allocation Index ETF||-0.36%|
|ETP||First Trust Global Risk Managed Income Index ETF||0.05%||PRP||Purpose Conservative Income Fund||0.55%|
|CBN||iShares Balanced Growth CorePortfolio Index ETF||1.00%|
|XAL||iShares Alternatives Completion Portfolio Builder Fund||-0.25%|
|week of:||Sept 18-22, 2017||ETF Strategists & ETFs of ETFs||Source:||ETFinsight/Bloomberg|
Brought to you by:
iShares: Rieder: Market lessons from the Gridirons => click HERE!
Pat Chiefalo takes over from Warren Collier at iShares Canada => Click HERE!
Congrats Pat: Having a deeply analytical, markets and products focused head … can’t hurt!
Vanguard: China’s Path to higher Productivity => Click HERE!
BMO ETFs: Cash Distributions for September 2017 => Click HERE!
RBC GAM ETFs: launches an extra 7 ETFs on NEO Exchange => click HERE!
Horizons ETFs: HXT remains Canada’s cheapest ETF => click HERE!
First Asset – Adds to its Actively Managed ETF line-up => click HERE!
ETFinsight – Lala borrows page from Seif’s playbook, launches CYBR and HERS
S&P | Dow Jones – is hosting its 2017 ETF Masterclass in Toronto and Montreal this week:
Weekly Volumes History to September 22, 2017:
Top and Bottom performing ETFs for the week of Sept 18-22, 2017:
|Ticker||Name||% Change||Avg Price||Weekly Volume||$ Volume traded|
|Top Performers||week of||Sept 18-22, 2017|
|ZBK CN Equity||BMO Equal Weight US Banks Index ETF||5.28%||$22.91||247,750||$5,668,785|
|OXF CN Equity||First Asset Can-Energy Covered Call ETF||5.02%||$9.37||10,786||$100,637|
|XEG CN Equity||iShares S&P/TSX Capped Energy Index ETF||4.70%||$11.75||20,753,307||$243,601,690|
|HXE CN Equity||Horizons S&P/TSX Capped Energy Index ETF||4.62%||$19.27||15,406||$298,138|
|ZJO CN Equity||BMO Junior Oil Index ETF||4.53%||$11.82||43,428||$513,876|
|ZEO CN Equity||BMO Equal Weight Oil & Gas Index ETF||4.49%||$10.72||1,342,975||$14,380,939|
|ZJN CN Equity||BMO Junior Gas Index ETF||4.22%||$14.82||59,954||$883,668|
|HEE CN Equity||Horizons Enhanced Income Energy ETF||4.08%||$12.28||29,391||$360,694|
|FSF CN Equity||First Asset Global Financial Sector ETF||3.77%||$18.74||12,834||$238,526|
|ZUB CN Equity||BMO Equal Weight US Banks Hedged to CAD Index ETF||3.73%||$26.33||602,614||$15,833,260|
|HGY CN Equity||Horizons Gold Yield ETF||-1.52%||$5.20||77,067||$401,040|
|XGD CN Equity||iShares S&P/TSX Global Gold Index ETF||-1.67%||$12.36||8,834,571||$109,190,430|
|HUG CN Equity||Horizons Gold ETF||-1.89%||$11.99||32,251||$387,445|
|HEP CN Equity||Horizons Enhanced Income Gold Producers ETF||-2.11%||$24.75||96,496||$2,392,584|
|ZJG CN Equity||BMO Junior Gold Index ETF||-2.13%||$9.23||357,523||$3,300,547|
|HUN CN Equity||Horizons Natural Gas ETF||-3.03%||$6.55||958,030||$6,408,486|
|MNS CN Equity||Royal Canadian Mint – Canadian Silver Reserves||-3.30%||$12.68||8,629||$109,418|
|SVR CN Equity||iShares Silver Bullion ETF||-3.92%||$9.47||64,076||$608,006|
|HUZ CN Equity||Horizons Silver ETF||-4.04%||$9.65||17,630||$169,663|
|HUV CN Equity||BetaPro S&P 500 VIX Short-Term Futures ETF||-4.38%||$7.26||165,651||$1,212,728|
Top Performing ETFs – US Banks registering a strong weekly performance, presumably helped along by a steady US FED in terms of guidance for future rate increases. Add Energy to the mix, and – as far as Canada is concerned … Energy is certainly helpful …
Bottom Performing ETFs – Golds and volatility at the losing end of the equation, pretty much as one would expect when rates are clearly depicted as being on their way up, and markets … take it in strides …
Last week’s Sector Performance:
Go Energy Go …