Tantrums no more? (TWTW – Sept 18-22, 2017)

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?

Latest Developments:

  • 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:

ticker name change ticker name change ticker name change
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:

ticker name change ticker name change
RAFI: Value: Yield:
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:

ticker name change ticker name change ticker name change
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%
HMA #N/A #N/A
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

Other:

S&P | Dow Jones – is hosting its 2017 ETF Masterclass in Toronto and Montreal this week:

Masterclass-2017-sandpdowjones

Weekly Volumes History to September 22, 2017:

etfinsight volumes week ending 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
Bottom Performers
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 …

sector performance week ending sept 22, 2017

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