Power … Consolidation? Grab? (TWTW – Nov 6-10, 2017)

Power … Consolidation? Grab? When all headlines pointed North Korea’s way, all of a sudden, Saudi Arabia grabbed them… Now, following a purge instituted by new ruler Crown Prince Mohammed bin Salman, the question, whether we are looking a consolidation or grab, is what are the implication for the region, as rising tensions including with Iran present significant risks.

As for Oil prices … up, up and away if OPEC gets its wishes (they next meet November 30th in Vienna … and failure on their part otherwise risks a sharp pullback…)

Latest Developments:

  • Junk Bonds – not faring all that well recently, with meaningful outflows witnessed South-side
  • Trump’s Asian Trip – Headlined USD 250 Billion of deals with China. Good headline, to be sure, but apparently under the surface, not all that much substance – which … a year after the Elections, seems to be a good overall description: underwhelming
  • China – Leader of the free World? Leading in terms of supporting Global trade and Climate Emission initiatives? Yep – Get an insular/Protectionist US President, and boom … How do you like them apples – a Centrally driven, Communist country trying to lay claim to the top dog spot … WOW
  • GE – CEO addresses what the future might look like for the Conglomerate post its 2017 >USD100 Billion of market cap losses … The dividend could be a goner … as likely will a lot of jobs. AND (last week) … former CEO Jeffrey Immelt quipped in an interview that it is easier following in the footsteps of a bum  than in Jack Welch’s … (Really, Jeffrey – that’s supposed to make shareholders feel better?)
  • Russia – President Trump stays the course of “it is better to have Russia as a friend than an enemy”. Fair enough – BUT how much interference was there in the US elections … AND isn’t that a bit of an issue – still?
  • Gluskin Sheff’s David Rosenberg – sees signs of decay beneath the surface for this market … => Click HERE!
  • BREXIT / NAFTA – next rounds underway shortly … Neither looking particularly positive …

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 0.21% PXG RAFI Global Fundamental -1.13% VCN FTSE Canada All Cap Index ETF 0.09%
XIC S&P/TSX Capped Composite 0.08% PXS RAFI US Fundamental Index -0.99% VCE FTSE Canada Index ETF 0.15%
CRQ RAFI CDN Fundamental 0.70% QQC/F NASDAQ 100 CAD Hedged 0.26% VUN CRSP US Total Market Index Unhedged -0.91%
XSP S&P 500 CAD Hedged -0.17% PZC RAFI CDN Small-Mid Fundam 0.00% VSP S&P 500 CAD Hedged -0.13%
XUS S&P500 -0.75% VXC FTSE All-World Ex Canada Index ETF -1.16%
XMU MSCI Min Vol US -0.34% XXM/b Morningstar US Value (Unh) -2.03% VEF FTSE Developed ex North-Am CAD H -1.17%
CLU RAFI US Fund 1000 CAD H -0.40% YXM/b Morningstar US Momentum (Unh) 0.17% VDU FTSE Developed ex North-America -1.29%
XSU Russell 2000 CAD Hedged -1.32% FXM Morningstar CDN Value -0.13% VE FTSE Developed Europe -2.21%
XIN MSCI EAFE CAD Hedged -1.30% WXM Morningstar CDN Momentum -0.75% VA FTSE Developed Asia Pacific -0.78%
XEH MSCI Europe IMI CAD H -1.93% VXM/b Morningstar Intl Value (Unh) -1.86% VEE FTSE Emerging Mkts -0.67%
XEC MSCI EM IMI -0.68% ZXM/b Morningstar Intl Momentum (Unh) -1.67% HAZ Active Global Dividends -1.00%
XMM MSCI Min Vol Emerging -0.18% RWE MSCI Europe Low Risk Weighted (H) -1.09% HHF Morningstar Hedge Fund Index 0.00%
CWO RAFI Broad Emerging -1.15% HMF Auspice Managed Futures 0.85%
CJP RAFI Fundam Japan CAD H -1.21% ZDJ Dow Jones CAD Hedged -0.27% HAC Seasonal Rotation -0.64%
CDZ CDN Div Aristocrats -0.37% ZEQ MSCI Europe High Quality CAD H -2.27% HPR Active Preferred Shares 0.10%
week of: Nov 6-10, 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 0.70% VXM/b Morningstar Intl Value (Unh) -1.86% CDZ iShares S&P/TSX Canadian Dividend Aristocrats Index ETF -0.37%
CLU RAFI US Fund 1000 CAD H -0.40% XXM/b Morningstar US Value (Unh) -2.03% XHU iShares US High Dividend Equity Index ETF -0.80%
CJP RAFI Fundam Japan CAD H -1.21% FXM Morningstar CDN Value -0.13% VGG Vanguard US Dividend Appreciation Index ETF -0.76%
CWO RAFI Broad Emerging -1.15% XCV iShares Canadian Value Index ETF -0.07% CUD iShares US Dividend Growers Index ETF CAD-Hedged 0.08%
PXG RAFI Global Fundamental -1.13% VVL Vanguard Global Value Factor Etf -1.74%
PZC RAFI CDN Small-Mid Fundam 0.00% Momentum:
YXM/b Morningstar US Momentum (Unh) 0.17%
Min Vol: ZXM/b Morningstar Intl Momentum (Unh) -1.67%
VVO Vanguard Global Minimum Volatility Etf -0.60% WXM Morningstar CDN Momentum -0.75% Multi-Factors:
XMW MSCI Min Vol World -0.56% VMO Vanguard Global Momentum Factor Etf -1.53% XFC iShares Edge MSCI Multifactor Canada Index ETF -0.67%
XMI MSCI Min Vol EAFE -0.74% Liquidity: XFS iShares Edge MSCI Multifactor USA Index ETF -0.82%
XMM MSCI Min Vol Emerging -0.18% VLQ Vanguard Global Liquidity Factor Etf -1.26% XFI iShares Edge MSCI Multifactor EAFE Index ETF -1.94%
XMU MSCI Min Vol US -0.34% Quality: Low Risk Weighted:
XMV MSCI Min Vol Canada 0.13% ZEQ BMO MSCI Europe High Quality Hedged To CAD Index ETF -2.27% RWE First Asset MSCI Europe Low Risk Weighted ETF -1.09%
week of: Nov 6-10, 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 -1.44%
EXGG Excel Global Growth Asset Allocation Etf -0.12% HAC Horizons Seasonal Rotation ETF -0.64%
EXGB Excel Global Balanced Asset Allocation Etf -0.33% HRA Horizons Global Risk Parity ETF -0.49%
HHF Horizons Morningstar Hedge Fund Index ETF 0.00%
DWG PowerShares DWA Global Momentum Index ETF -0.96%
XTR iShares Diversified Monthly Income ETF 0.00%
FIE iShares Canadian Financial Monthly Income ETF -0.92%
ZMI BMO Monthly Income ETF -0.37%
CBD iShares Balanced Income CorePortfolio Index ETF 0.18% FUT First Asset US Tactical Sector Allocation Index ETF -0.22%
ETP First Trust Global Risk Managed Income Index ETF -0.56% PRP #N/A #N/A
CBN iShares Balanced Growth CorePortfolio Index ETF -0.38%
week of: Nov 6-10, 2017 ETF Strategists & ETFs of ETFs Source: ETFinsight/Bloomberg

Brought to you by: 

Providers’ News:

iShares – Lipper Awards winners = view all: Click HERE!

Vanguard – 53: Age at which financial capability peaks => click HERE!

(Funny side bar here: a) I am not very far from that number … b) isn’t that pretty close to the age of the “average” Investment Advisor?

BMO ETFs: Tomorrow’s ETF Essentials “event” ion Toronto => Click HERE!

Lipper Awards: click HERE!

Horizons – Lipper Awards winners: HAC; HPR; HOG => click HERE!


ETFinsight – November 2017 Perspectives: All Treats, No Tricks

Industry AUM reach CAD 141.3Billion, pace of AUM growth picks up, bolstered by strong markets backdrop and continued strong issuance…

Leo Awakened => Including RBC GAM enjoying record net issuance in October => Click HERE! underpinned by significant broadening of product offering in Aug/Sept…

RBC GAM ETF = Lipper Winner: Bond Category

PowerShares = Lipper Winner: Equity Category

ExcelFunds – Notification re: Termination of Sub-Advisory agreement => Click HERE!

MFDA Channel – Here we come … VEXO announces partnership with JustWealth! => Click HERE!

Weekly Volumes History to November 10, 2017:

volumes week ending November 10, 2017

Top and Bottom performing ETFs for the week of November 6-10, 2017:

Ticker Name % Change Avg Price Weekly Volume $ Volume traded
Top Performers week of Nov 6-10, 2017
HMMJ CN Equity Horizons Marijuana Life Sciences Index ETF 12.88% $11.35 5,092,006 $58,182,292
HNY CN Equity Horizons Natural Gas Yield ETF 6.56% $12.30 44,729 $550,693
HUN CN Equity Horizons Natural Gas ETF 5.94% $6.31 74,184 $459,643
HUC CN Equity Horizons Crude Oil ETF 3.56% $11.81 106,135 $1,249,973
HUV CN Equity BetaPro S&P 500 VIX Short-Term Futures ETF 3.05% $5.93 88,792 $533,194
ZEO CN Equity BMO Equal Weight Oil & Gas Index ETF 2.86% $11.48 4,661,446 $53,519,943
HXE CN Equity Horizons S&P/TSX Capped Energy Index ETF 2.71% $21.13 97,252 $2,066,197
HEE CN Equity Horizons Enhanced Income Energy ETF 2.30% $12.88 68,470 $882,677
XST CN Equity iShares S&P/TSX Capped Consumer Staples Index ETF 2.11% $54.95 77,196 $4,226,381
XEG CN Equity iShares S&P/TSX Capped Energy Index ETF 2.07% $12.80 26,106,214 $333,992,290
Bottom Performers
HBG CN Equity Hamilton Capital Global Bank ETF -2.33% $21.60 107,579 $2,327,672
SHE CN Equity Sphere FTSE Europe Sustainable Yield Index ETF -2.38% $11.64 22,544 $263,917
BANK CN Equity BMO Global Bank Hedged to CAD Index ETF -2.39% $21.06 61,192 $1,273,677
EHE CN Equity Wisdomtree Europe Hedged Equity Index ETF -2.59% $26.29 31,229 $810,757
HFMU/U CN Equity Hamilton Capital US Mid-Cap Financials ETF -2.62% $16.97 41,186 $692,950
HXX CN Equity Horizons Euro Stoxx 50 R Index Etf -2.78% $31.26 136,470 $4,301,802
XID CN Equity iShares India Index ETF -2.80% $35.18 39,340 $1,387,288
EHE/B CN Equity Wisdomtree Europe Hedged Equity Index ETF -3.32% $25.84 28,150 $726,678
ZUB CN Equity BMO Equal Weight US Banks Hedged to CAD Index ETF -4.64% $27.74 2,551,904 $70,409,722
ZBK CN Equity BMO Equal Weight US Banks Index ETF -5.41% $24.96 847,920 $21,119,285

Top Performing ETFs – Energy Energy Energy … oh, and Pot, as well as Volatility (the latter being a rare sight, generally)!

Bottom Performing ETFs – US Banks (ZBK; ZUB) after recent strong performance … just a pause? Probably … although in part, the fact that the new Head of the FED come Feb is perceived as just as dovish as his predecessor … presumably takes a little bit off the table as far as outlook for rates …. and outlook, however, which continues to have several hikes penciled in … no matter who is at the helm…

Last week’s Sector Performance:

HMMJ – continued strength with ETF seeing new … Highs (!)

Otherwise – Energy – on significant volumes … Further strength into year-end? Or … risk of sizable pullback – for now probably the former…

sectors week ending Nov 10, 2017














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