Nothing in Return – Also known as “Winner Takes all” in Foreign Affairs Minister Chrystia Freeland parlance”, is what the US has in mind when in comes to the current NAFTA re-negotiations … That angle has been confirmed by US Commerce Secretary Wilbur Ross in a CNBC interview in which he stated “But we’re trying to do a difficult thing. We’re asking two countries to give up some privileges that they have enjoyed for 22 years, and we’re not in a position to offer anything in return, so that’s a tough sell“.
This doesn’t sound much like negotiations involving compromise and/or give and take … which could a) be a strategic choice, or b) very much the US mindset currently … Either way, it is probably very much the reason behind renewed CAD weakness, despite the country’s economy for the moment topping the G7 performance chart, and a positive budget update from our Finance Minister Bill Morneau released this week that was headlined by a 2017 budget deficit forecast at $19.9 Billion, from earlier estimates of $28.5 Billion.
Unfortunately for Bill … but that isn’t what is likely weighing on the loonie, his own personal dealings have landed him under a microscope (and on the Ethics commissioner’s to do list …) after he failed to do what he was supposed to re: “Blind trust” … and so now, he is pledging to give to charity the gains enjoyed while having omitted to do what he said he would … Is it just me? Or is it the very Canadian thing to do in political circles? Forever ignore what is expected of mere mortal taxpayers, and attempt to get away with whatever you please (the more outrageous, almost the better…) , and if and when caught, simply bet on the usual Canadian leniency. WOW! Would he have voluntereed that generous donation had he not been caught? The word doubtful comes to mind …
Back to more trivial matters – having very much surprised many in September when last hiking the overnight, the BoC’s Poloz was talking downside risk when seeking shelter from potential criticism (given the current strength in economic numbers) – as he left the overnight unchanged this time.
Could CAD have a meaningful bounce if the dire NAFTA newsflow were to take a turn for the better – as unlikely as that may seem? One would assume so, with most all Banks’ prognosticators in matters FX related uniformly anticipating potential strength for the Loonie between now and year-end. Unless that was all in anticipation of the potential collision course story circulating ahead of both the budget update, and the latest BoC rate decision – a story that didn’t come to pass as Stephen Poloz remains mindful of downside risk including NAFTA.
- Spain – Passes measures aimed at defeating Separatists in Catalonia
- GE – continuing to drop precipituously, with many now seeing it as a foregone conclusion that the dividend will get clipped come GE day, November 13th
- The Bank of Canada – left the O/N rate unchanged, having previously removed the 2 oil price meltdown insurance cuts. CAD strength and NAFTA concerns were cited…
- Japan’s PM Abe – success at securing a super majority in the most recent elections garantees a continuation of his policies
- NAFTA head negotiator Robert Lighthizer – is portrayed first and foremost as a protectionist in a G&M piece over the week-end, which … doesn’t exactly bode well for the next round of talks to be held in Mexico…
- Amazon – sailed past forecasts in its Q3 reporting, and its stock rose sharply as a result, making CEO Jeff Bezos world’s richest person …
- Apple – contrary to expectations that iPhone X might not deliver on the strong sales front, demand is apparently strong, with the share price also moving up smartly in response…
Latest market numbers as seen through ETFs providing exposure to the most commonly referred to benchmarks:
|XIU||S&P/TSX 60||0.79%||PXG||RAFI Global Fundamental||1.63%||VCN||FTSE Canada All Cap Index ETF||0.72%|
|XIC||S&P/TSX Capped Composite||0.64%||PXS||RAFI US Fundamental Index||1.71%||VCE||FTSE Canada Index ETF||0.77%|
|CRQ||RAFI CDN Fundamental||0.38%||QQC/F||NASDAQ 100 CAD Hedged||1.83%||VUN||CRSP US Total Market Index Unhedged||1.81%|
|XSP||S&P 500 CAD Hedged||0.27%||PZC||RAFI CDN Small-Mid Fundam||-0.77%||VSP||S&P 500 CAD Hedged||0.31%|
|XUS||S&P500||1.89%||VXC||FTSE All-World Ex Canada Index ETF||1.76%|
|XMU||MSCI Min Vol US||1.65%||XXM/b||Morningstar US Value (Unh)||2.52%||VEF||FTSE Developed ex North-Am CAD H||0.88%|
|CLU||RAFI US Fund 1000 CAD H||-0.46%||YXM/b||Morningstar US Momentum (Unh)||2.10%||VDU||FTSE Developed ex North-America||1.52%|
|XSU||Russell 2000 CAD Hedged||-0.12%||FXM||Morningstar CDN Value||0.07%||VE||FTSE Developed Europe||0.65%|
|XIN||MSCI EAFE CAD Hedged||0.83%||WXM||Morningstar CDN Momentum||1.00%||VA||FTSE Developed Asia Pacific||2.72%|
|XEH||MSCI Europe IMI CAD H||0.60%||VXM/b||Morningstar Intl Value (Unh)||2.16%||VEE||FTSE Emerging Mkts||1.50%|
|XEC||MSCI EM IMI||1.42%||ZXM/b||Morningstar Intl Momentum (Unh)||2.02%||HAZ||Active Global Dividends||1.69%|
|XMM||MSCI Min Vol Emerging||1.29%||RWE||MSCI Europe Low Risk Weighted (H)||0.57%||HHF||Morningstar Hedge Fund Index||-0.14%|
|CWO||RAFI Broad Emerging||1.26%||HMF||Auspice Managed Futures||-0.48%|
|CJP||RAFI Fundam Japan CAD H||2.64%||ZDJ||Dow Jones CAD Hedged||0.55%||HAC||Seasonal Rotation||0.59%|
|CDZ||CDN Div Aristocrats||0.41%||ZEQ||MSCI Europe High Quality CAD H||0.89%||HPR||Active Preferred Shares||-0.10%|
|week of:||Oct 23-27, 2017||OVERALL||Source:||ETFinsight/Bloomberg|
Respectively through available “FACTORS” (Smart or Strategic Beta) ETFs:
|CRQ||RAFI CDN Fundamental||0.38%||VXM/b||Morningstar Intl Value (Unh)||2.16%||CDZ||iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||0.41%|
|CLU||RAFI US Fund 1000 CAD H||-0.46%||XXM/b||Morningstar US Value (Unh)||2.52%||XHU||iShares US High Dividend Equity Index ETF||0.49%|
|CJP||RAFI Fundam Japan CAD H||2.64%||FXM||Morningstar CDN Value||0.07%||VGG||Vanguard US Dividend Appreciation Index ETF||1.91%|
|CWO||RAFI Broad Emerging||1.26%||XCV||iShares Canadian Value Index ETF||0.92%||CUD||iShares US Dividend Growers Index ETF CAD-Hedged||-0.67%|
|PXG||RAFI Global Fundamental||1.63%||VVL||Vanguard Global Value Factor Etf||1.20%|
|PZC||RAFI CDN Small-Mid Fundam||-0.77%||Momentum:|
|YXM/b||Morningstar US Momentum (Unh)||2.10%|
|Min Vol:||ZXM/b||Morningstar Intl Momentum (Unh)||2.02%|
|VVO||Vanguard Global Minimum Volatility Etf||0.47%||WXM||Morningstar CDN Momentum||1.00%||Multi-Factors:|
|XMW||MSCI Min Vol World||1.50%||VMO||Vanguard Global Momentum Factor Etf||1.98%||XFC||iShares Edge MSCI Multifactor Canada Index ETF||-0.29%|
|XMI||MSCI Min Vol EAFE||0.95%||Liquidity:||XFS||iShares Edge MSCI Multifactor USA Index ETF||2.57%|
|XMM||MSCI Min Vol Emerging||1.29%||VLQ||Vanguard Global Liquidity Factor Etf||1.30%||XFI||iShares Edge MSCI Multifactor EAFE Index ETF||2.07%|
|XMU||MSCI Min Vol US||1.65%||Quality:||Low Risk Weighted:|
|XMV||MSCI Min Vol Canada||0.88%||ZEQ||BMO MSCI Europe High Quality Hedged To CAD Index ETF||0.89%||RWE||First Asset MSCI Europe Low Risk Weighted ETF||0.57%|
|week of:||Oct 23-27, 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||1.18%|
|EXGG||Excel Global Growth Asset Allocation Etf||1.27%||HAC||Horizons Seasonal Rotation ETF||0.59%|
|EXGB||Excel Global Balanced Asset Allocation Etf||0.86%||HRA||Horizons Global Risk Parity ETF||-0.20%|
|HHF||Horizons Morningstar Hedge Fund Index ETF||-0.14%|
|DWG||PowerShares DWA Global Momentum Index ETF||3.96%|
|XTR||iShares Diversified Monthly Income ETF||-0.44%|
|FIE||iShares Canadian Financial Monthly Income ETF||0.20%|
|ZMI||BMO Monthly Income ETF||0.31%|
|CBD||iShares Balanced Income CorePortfolio Index ETF||-0.27%||FUT||First Asset US Tactical Sector Allocation Index ETF||-0.09%|
|ETP||First Trust Global Risk Managed Income Index ETF||0.10%||PRP||Purpose Conservative Income Fund||0.24%|
|CBN||iShares Balanced Growth CorePortfolio Index ETF||0.29%|
|week of:||Oct 23-27, 2017||ETF Strategists & ETFs of ETFs||Source:||ETFinsight/Bloomberg|
Brought to you by:
iShares – Ackerley: Trick or Treat – Top 4 retirement savings ideas
Vanguard – Davis: The truth behind indexing
BMO ETFs – Latest quarterly => click HERE!
Horizons ETFs – launches HADM – the International Dividend companion to the Global HAZ, the US HAU, and the Canadian HAL ETFs managed by Guardian Capital => click HERE!
RBC GAM – How exactly does RBC’s recently launched RBNK work? As earlier noted, emphasis on higher yielders, which get sizable allocation relative to the two lesser yielding banks in particular … So what is the tilt? High dividend payers, with a mean reverting bias, as when bank yields rise is typically when a bank stock has been lagging its peers… So long as no yield trap materializes … all good…
PowerShares – Brian Schneider’s (Head of Rates North America) take on the BoC leaving rates unchanged => click HERE!
First Assets – Recently marked the launch of their actively managed enhanced short duration bond ETF by opening the market (26/10) => click HERE!
Purpose Investments – risk rating change => Click HERE !
EvolveFunds – Rounds out its offering with the launch of its enhanced yield Global Healthcare ETF => click HERE!
Weekly Volumes History to October 27, 2017:
Top and Bottom performing ETFs for the week of Oct 23-27, 2017:
|Ticker||Name||% Change||Avg Price||Weekly Volume||$ Volume traded|
|Top Performers||week of||Oct 23-27, 2017|
|ZID CN Equity||BMO India Equity Index ETF||5.80%||$22.96||123,834||$2,824,366|
|XID CN Equity||iShares India Index ETF||4.04%||$34.76||50,370||$1,756,367|
|FHM CN Equity||First Trust AlphaDEX US Materials Sector Index ETF||3.95%||$26.55||199,905||$5,316,334|
|ZBK CN Equity||BMO Equal Weight US Banks Index ETF||3.62%||$25.24||740,764||$18,683,132|
|HXQ CN Equity||Horizons NASDAQ 100 Index ETF||3.62%||$43.19||7,152||$311,540|
|RUSA CN Equity||RBC US Equity Index Etf||3.46%||$21.61||78,172||$1,683,424|
|TXF/B CN Equity||First Asset Tech Giants Covered Call ETF||3.45%||$17.06||87,830||$1,491,843|
|DXG CN Equity||Dynamic Ishares Active Global Dividend Etf||3.09%||$23.24||103,759||$2,407,874|
|HTA/U CN Equity||Tech Achievers Growth & Income ETF||3.02%||$9.74||18,965||$183,883|
|VA CN Equity||Vanguard FTSE Developed Asia Pacific All Cap Index ETF||2.72%||$33.89||57,346||$1,950,121|
|XGD CN Equity||iShares S&P/TSX Global Gold Index ETF||-2.01%||$12.26||7,700,282||$94,386,610|
|HMMJ CN Equity||Horizons Marijuana Life Sciences Index ETF||-2.22%||$9.91||1,379,755||$13,775,011|
|RPD/U CN Equity||RBC Quant European Dividend Leaders ETF||-2.27%||$18.78||20,162||$376,849|
|XHC CN Equity||iShares Global Healthcare Index ETF CAD-Hedged||-2.38%||$44.84||59,849||$2,688,869|
|HNY CN Equity||Horizons Natural Gas Yield ETF||-3.10%||$12.21||39,457||$476,267|
|HHL CN Equity||Healthcare Leaders Income ETF||-3.11%||$8.54||1,017,343||$8,658,845|
|HHL/U CN Equity||Healthcare Leaders Income ETF||-3.13%||$8.49||83,935||$710,337|
|ZGD CN Equity||BMO Equal Weight Global Gold Index ETF||-3.20%||$9.49||519,639||$4,934,628|
|HUN CN Equity||Horizons Natural Gas ETF||-3.97%||$6.25||39,882||$244,668|
|ZJG CN Equity||BMO Junior Gold Index ETF||-4.24%||$9.02||378,128||$3,401,334|
Top Performing ETFs – Strong showing on the part of both India ETFs available here, further strength from the prior week in the US Banks ETFs square, and strength as well in NASDAQ on the back of better than anticipated results on the part of some of the FANGS stocks, notably Amazon and Apple.
Bottom Performing ETFs – Continued weakness in Gold was accompanied by some pullback in Healthcare, and additional weakness in Natural Gas exposed ETFs.
Last week’s Sector Performance: