Allegiance … (TWTW – Sept 25-29, 2017)

Allegiance … – There seems to be no boundaries as far as what the Donald’s Tweets might go after … With one more controversy involving NFL players taking a knee ahead of their games … Thankfully, owners, smarter than the leader in chief, are displaying the right attitude: Respect.

As for the Donald, well, according to him, North Korea will soon be obliterated, and NAFTA shredded – NAFTA, which this past week got perhaps its biggest boost as far as rationale for Article 19, from the US Administration opting to slap on a 220% punitive levy on sales of C Series Aircrafts by Quebec’s Bombardier…

Recent Developments:

  • Bank of Canada – Following the removal of his 2 “insurance” cuts against an earlier collapse in oil prices, Stephen Poloz is now talking up “data dependency” in terms of the path for rates from here. Some have now described the outlook as rates possibly headed in … “Either Direction …”
  • Bombardier – Tough week for the Bomber, as a) it got hit with massive duties by Trump’s administration in relation to its dispute with Boeing, and b) it got left out at the dance, as Germany’s Siemens, instead of teaming up with Bombardier, opted for an all-European solution involved IT and France’s Altsom … (The stock, you ask? after taking a predictable hit on account of the US protectionist move, it bounced back pretty much to where it stood beforehand …). Where to from here?
  • Trump – Got himself embroiled in yet another controversy … This time picking on footballplayers’ pre-game rituals, which he sees as disrespectful of the US National Anthem … Thankfully, players, and owners are standing united against the Great Twitter Bully …
  • Twitter – talking about Twitter, we’re now going to go to 240 characters? Really? I’d gotten quite used to 120 …
  • Toronto Mayor John Tory – a Rob Ford stadium??? Seriously??? Wow, poor Torontonians, still no shortage of total nonsense in that city when it comes to the former and now deceased “Mayor” …
  • UBS – sees Toronto at the Top as far as cities at risk of a housing bubble … (will it ever pop? “affordability” says it probably has some correcting to do … we’ll see … Importantly, if and when it does, it won’t do so in a vacuum, meaning we likely can expect some major repercussion on the broader Canadian economy (so watch out!)

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 1.59% PXG RAFI Global Fundamental 1.24% VCN FTSE Canada All Cap Index ETF 1.38%
XIC S&P/TSX Capped Composite 0.60% PXS RAFI US Fundamental Index 1.75% VCE FTSE Canada Index ETF 1.63%
CRQ RAFI CDN Fundamental 1.12% QQC/F NASDAQ 100 CAD Hedged 0.58% VUN CRSP US Total Market Index Unhedged 2.02%
XSP S&P 500 CAD Hedged 0.64% PZC RAFI CDN Small-Mid Fundam #N/A VSP S&P 500 CAD Hedged 0.73%
XUS S&P500 1.71% VXC FTSE All-World Ex Canada Index ETF 1.54%
XMU MSCI Min Vol US 1.07% XXM/b Morningstar US Value (Unh) 3.42% VEF FTSE Developed ex North-Am CAD H 1.08%
CLU RAFI US Fund 1000 CAD H 0.54% YXM/b Morningstar US Momentum (Unh) 2.55% VDU FTSE Developed ex North-America 1.28%
XSU Russell 2000 CAD Hedged 2.94% FXM Morningstar CDN Value 0.13% VE FTSE Developed Europe 0.99%
XIN MSCI EAFE CAD Hedged 0.94% WXM Morningstar CDN Momentum 0.06% VA FTSE Developed Asia Pacific 1.36%
XEH MSCI Europe IMI CAD H 1.19% VXM/b Morningstar Intl Value (Unh) 1.20% VEE FTSE Emerging Mkts -0.24%
XEC MSCI EM IMI -0.11% ZXM/b Morningstar Intl Momentum (Unh) 1.22% HAZ Active Global Dividends 0.80%
XMM MSCI Min Vol Emerging 0.34% RWE MSCI Europe Low Risk Weighted (H) 0.04% HHF Morningstar Hedge Fund Index 0.22%
CWO RAFI Broad Emerging -2.07% HMF Auspice Managed Futures -0.49%
CJP RAFI Fundam Japan CAD H 1.25% ZDJ Dow Jones CAD Hedged -0.31% HAC Seasonal Rotation 0.11%
CDZ CDN Div Aristocrats 0.92% ZEQ MSCI Europe High Quality CAD H 0.37% HPR Active Preferred Shares 0.32%
week of: Sept 25-29, 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 1.12% VXM/b Morningstar Intl Value (Unh) 1.20% CDZ iShares S&P/TSX Canadian Dividend Aristocrats Index ETF 0.92%
CLU RAFI US Fund 1000 CAD H 0.54% XXM/b Morningstar US Value (Unh) 3.42% XHU iShares US High Dividend Equity Index ETF 1.42%
CJP RAFI Fundam Japan CAD H 1.25% FXM Morningstar CDN Value 0.13% VGG Vanguard US Dividend Appreciation Index ETF 1.87%
CWO RAFI Broad Emerging -2.07% XCV iShares Canadian Value Index ETF 0.98% CUD iShares US Dividend Growers Index ETF CAD-Hedged 0.70%
PXG RAFI Global Fundamental 1.24% VVL Vanguard Global Value Factor Etf 2.63%
PZC RAFI CDN Small-Mid Fundam #N/A Momentum:
YXM/b Morningstar US Momentum (Unh) 2.55%
Min Vol: ZXM/b Morningstar Intl Momentum (Unh) 1.22%
VVO Vanguard Global Minimum Volatility Etf 0.82% WXM Morningstar CDN Momentum 0.06% Multi-Factors:
XMW MSCI Min Vol World 1.43% VMO Vanguard Global Momentum Factor Etf 2.34% XFC iShares Edge MSCI Multifactor Canada Index ETF 0.51%
XMI MSCI Min Vol EAFE 1.34% Liquidity: XFS iShares Edge MSCI Multifactor USA Index ETF 2.14%
XMM MSCI Min Vol Emerging 0.34% VLQ Vanguard Global Liquidity Factor Etf 2.50% XFI iShares Edge MSCI Multifactor EAFE Index ETF 0.52%
XMU MSCI Min Vol US 1.07% Quality: Low Risk Weighted:
XMV MSCI Min Vol Canada 0.80% ZEQ BMO MSCI Europe High Quality Hedged To CAD Index ETF 0.37% RWE First Asset MSCI Europe Low Risk Weighted ETF 0.04%
week of: Sept 25-29, 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 1.04%
EXGG Excel Global Growth Asset Allocation Etf -0.25% HAC Horizons Seasonal Rotation ETF 0.11%
EXGB Excel Global Balanced Asset Allocation Etf 0.00% HRA Horizons Global Risk Parity ETF 0.30%
HHF Horizons Morningstar Hedge Fund Index ETF 0.22%
DWG PowerShares DWA Global Momentum Index ETF 1.07%
HMA #N/A #N/A
XTR iShares Diversified Monthly Income ETF 0.27% XGR #N/A #N/A
FIE iShares Canadian Financial Monthly Income ETF 0.83% XCR #N/A #N/A
ZMI BMO Monthly Income ETF 0.31% XGC #N/A #N/A
CBD iShares Balanced Income CorePortfolio Index ETF 0.32% FUT First Asset US Tactical Sector Allocation Index ETF -0.18%
ETP First Trust Global Risk Managed Income Index ETF 0.10% PRP Purpose Conservative Income Fund 0.35%
CBN iShares Balanced Growth CorePortfolio Index ETF 1.08%
XAL #N/A #N/A
week of: Sept 25-29, 2017 ETF Strategists & ETFs of ETFs Source: ETFinsight/Bloomberg

Brought to you by: 

iShares: Rosenberg: “parsing the ECB’s next move

Active offering expanded, while existing rendered more affordable => Click HERE!

Final valuation of terminated ETFs => click HERE!

Vanguard: Tiwari: The Vanguard Effect takes hold => click HERE!

Note to my fellow Canadians: feel free not to say “sorry” , but instead say Thanks Vanguard – for in my view, truly, the secondary impact is much much more sizable than that $3.2 Million … And that money, all of you “savers” out there … Compounds in your and my account(s), allowing us all to reach better total returns longer term, and hence superior outcomes relative to a high cost low value proposition all too often present in our market place …

BMO ETFs: Upcoming ETF Essentials “events” => Click HERE!

RBC GAM ETFs: From RBC’s One Minute Market update (Click HERE!) => Protectionism  represents a considerable threat to global growth and the risk surrounding international relations is arguably rising.

Horizons ETFs: HXDM => One more EAFE – devoted ETF, you say, what for? In the case of HXDM, the “novelty” is the Total Return Swap underpinning it, allowing it to compound the dividend side of the equation “sans” the taxes that would otherwise take a bite out of the total returns HXDM will be able to deliver on account of its structure, which is also available for Canadian and US exposure… => click HERE!

First Asset – Opened market (25/9)  to mark availability of non CAD hedged Covered Call Tech leaders => click HERE!

Evolve Funds– Raj Lala’s team also opens the market, and introduces CARs ETF… as well as actively managed Pref ETF (yep, one more of these … which might be a tough grind, given some of the managed ones are already very well established, with hundreds and even Billion(s) in AUM …

Other:

S&P | Dow Jones – hosted its 2017 ETF Masterclass in Toronto and Montreal this past week .

Dominating the discussion was the need to remove the conflict of interest inherent to the embedded compensation model (great job on that front, John DeGoey!)

Impact and significance of Indexisation in terms of Factors, and impact on Active management …

Need for industry to get back to the basics of understanding the inherent impossibility for the entire industry to deliver as far as beating the market – something which SPIVA stresses repeatedly, and yet … still a long way to go for the industry in terms of what that should translate into for end investors …

Weekly Volumes History to September 29, 2017:

Ending the quarter with a sharp volume spike … Does this portend more tumultuous final quarter?

etfinsight volumes week ending september 29, 2017

Top and Bottom performing ETFs for the week of Sept 25-29, 2017:

Ticker Name % Change Avg Price Weekly Volume $ Volume traded
Top Performers week of Sept 25-29, 2017
ZJO CN Equity BMO Junior Oil Index ETF 4.67% $12.41 117,739 $1,457,507
ZBK CN Equity BMO Equal Weight US Banks Index ETF 3.84% $23.70 351,255 $8,340,319
ZJN CN Equity BMO Junior Gas Index ETF 3.52% $15.46 49,740 $768,784
XXM/B CN Equity First Asset Morningstar US Value Index ETF 3.42% $16.10 90,702 $1,452,204
FHB CN Equity First Asset European Bank ETF 3.09% $9.44 186,531 $1,756,959
XSU CN Equity iShares U.S. Small Cap Index ETF CAD-Hedged 2.94% $31.36 1,788,693 $55,990,427
ZUB CN Equity BMO Equal Weight US Banks Hedged to CAD Index ETF 2.74% $26.97 630,560 $17,043,097
VVL CN Equity Vanguard Global Value Factor Etf 2.63% $31.88 40,633 $1,296,619
XXM CN Equity First Asset Morningstar US Value Index ETF 2.57% $13.05 58,620 $762,994
XMC CN Equity iShares S&P U.S. Mid-Cap Index ETF 2.56% $16.98 98,686 $1,671,707
Bottom Performers
ZID CN Equity BMO India Equity Index ETF -1.23% $21.50 70,807 $1,513,583
HUG CN Equity Horizons Gold ETF -1.26% $11.87 1,908,562 $22,528,875
RGRE/U CN Equity RBC Quant Global Real Estate Leaders Etf -1.32% $15.03 46,224 $692,271
MXF CN Equity First Asset Can-Materials Covered Call ETF -1.39% $14.35 18,860 $270,738
RIE/U CN Equity RBC Quant Eafe Equity Leaders Etf -1.53% $17.41 12,000 $208,720
SHZ CN Equity Sphere FTSE Emerging Markets Sustainable Yield Index ETF -1.54% $10.92 42,289 $462,635
HEP CN Equity Horizons Enhanced Income Gold Producers ETF -1.62% $24.50 75,825 $1,856,517
ZJG CN Equity BMO Junior Gold Index ETF -1.63% $9.16 222,111 $2,040,308
HCN CN Equity Horizons China High Dividend Yield Index ETF -2.09% $24.51 50,827 $1,226,235
HUV CN Equity BetaPro S&P 500 VIX Short-Term Futures ETF -4.58% $7.10 157,535 $1,131,863

Top Performing ETFs – US Banks registering continued strong weekly gains, helped along by expectations of continued rate hikes south of the border … even if infation isn’t (YET?) at levels necessarily validating rising rates, respectively still the “missing piece” as far as providing justification for further hikes. According to Janet Yellen though … FED to stay ahead of that, as understated inflation could be transitory … and better to be ahead of the curve than behind it (?) …

Bottom Performing ETFs – Vol still as subdued as ever (credit TINA for that – there is no alternative … to stocks…), respectively some pullback for EM related exposure (prospect of continuation of rising rates a challenge for them at some point, and for now possibly justification to take some money off the table on a temporary basis (?).

Last week’s Sector Performance:

Technology takes the lead (again, and again?)

etfinsight sector performance week ending september 29, 2017

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