Rationale Exuberance – David Kostin, Chief U.S. Equity strategist at Goldman Sachs, describing the stock market recently, in a tongue in cheek reference to the famous Alan Greenspan 1996 warning against Irrational Exuberance …
The fact that the bullmarket we’re in has repeatedly been described as the most hated in history has kept animal spirits – at least that is what we are told – in check means that while valuations may be elevated, there could be further upside to come still, the caveat being the lifting will have to come from earnings, all the while hoping further Central Banks’ normalization doesn’t throw a wrench in the whole thing…
- Janet Yellen – In what will in all likelihood be her final act as far as hiking rates, moved FED funds up 25 bps, as per consensus. The FED’s leadership baton gets passed on to Jerome Powell in early February, and while there is a January FOMC meeting, expectations are that Janet’s FED won’t change anything – opting instead to let Jerome take it from there …
- Aviso Wealth – Credible alternative to Canada’s big banks emerge on the wealth management front? the Globe Clare O’Hara on
New wealth management firm sets sights on Canada’s big banks
Credential Financial Inc., Qtrade Canada Inc. and NEI Investments have joined forces to launch a new independent wealth management firm in Canada that will be able to compete more aggressively with some of Canada’s largest financial firms, including the Big Five banks.
Read More => Click HERE!
Alabama Elections results – Delivered Trump’s pick Roy Moore a defeat described as “stunning” => Click HERE!
Disney – Goes for the big deal with 21st Century Fox – Intensifying fight with NETFLIX ahead?
Outlook for Oil – Bloomberg hightlights a significant divergence in expectations as far as crude inventories in 2018, between OPEC’s on the producers’ side, and the IEA on the consumers’ side. The implication – that both can’t be right – bears watching as far as impact on prices next year … Closer to home, Western Canadian Crude has come under pressure, with production overwhelming pipeline capacity, and more increases set for 2018 …
Hunter Harrison – CSX CEO passed away over the week-end. News that the former CEO of both Canadian Railway and Canadian Pacific Railway, had gone on an unexpected leave hit CSX’s stock price Friday. The passing of Hedge Fund Manager Bill Ackman’s point man on the CP investment pressured the shares further on Monday…
Latest market numbers as seen through ETFs providing exposure to the most commonly referred to benchmarks:
|XIU||S&P/TSX 60||-0.41%||PXG||RAFI Global Fundamental||0.60%||VCN||FTSE Canada All Cap Index ETF||-0.31%|
|XIC||S&P/TSX Capped Composite||-0.20%||PXS||RAFI US Fundamental Index||1.07%||VCE||FTSE Canada Index ETF||-0.46%|
|CRQ||RAFI CDN Fundamental||-0.13%||QQC/F||NASDAQ 100 CAD Hedged||1.85%||VUN||CRSP US Total Market Index Unhedged||0.83%|
|XSP||S&P 500 CAD Hedged||0.89%||PZC||RAFI CDN Small-Mid Fundam||0.24%||VSP||S&P 500 CAD Hedged||0.96%|
|XUS||S&P500||1.00%||VXC||FTSE All-World Ex Canada Index ETF||0.72%|
|XMU||MSCI Min Vol US||1.13%||XXM/b||Morningstar US Value (Unh)||0.00%||VEF||FTSE Developed ex North-Am CAD H||-0.05%|
|CLU||RAFI US Fund 1000 CAD H||0.69%||YXM/b||Morningstar US Momentum (Unh)||0.22%||VDU||FTSE Developed ex North-America||0.20%|
|XSU||Russell 2000 CAD Hedged||0.62%||FXM||Morningstar CDN Value||-0.26%||VE||FTSE Developed Europe||-0.14%|
|XIN||MSCI EAFE CAD Hedged||0.00%||WXM||Morningstar CDN Momentum||0.00%||VA||FTSE Developed Asia Pacific||0.97%|
|XEH||MSCI Europe IMI CAD H||-0.08%||VXM/b||Morningstar Intl Value (Unh)||0.31%||VEE||FTSE Emerging Mkts||0.76%|
|XEC||MSCI EM IMI||0.72%||ZXM/b||Morningstar Intl Momentum (Unh)||0.39%||HAZ||Active Global Dividends||0.46%|
|XMM||MSCI Min Vol Emerging||1.33%||RWE||MSCI Europe Low Risk Weighted (H)||-0.15%||HHF||Morningstar Hedge Fund Index||1.39%|
|CWO||RAFI Broad Emerging||0.91%||HMF||Auspice Managed Futures||0.12%|
|CJP||RAFI Fundam Japan CAD H||0.24%||ZDJ||Dow Jones CAD Hedged||1.37%||HAC||Seasonal Rotation||0.00%|
|CDZ||CDN Div Aristocrats||-0.26%||ZEQ||MSCI Europe High Quality CAD H||-0.25%||HPR||Active Preferred Shares||0.00%|
|week of:||Dec 11-15, 2017||OVERALL||Source:||ETFinsight/Bloomberg|
Respectively through available “FACTORS” (Smart or Strategic Beta) ETFs:
|CRQ||RAFI CDN Fundamental||-0.13%||VXM/b||Morningstar Intl Value (Unh)||0.31%||CDZ||iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||-0.26%|
|CLU||RAFI US Fund 1000 CAD H||0.69%||XXM/b||Morningstar US Value (Unh)||0.00%||XHU||iShares US High Dividend Equity Index ETF||1.10%|
|CJP||RAFI Fundam Japan CAD H||0.24%||FXM||Morningstar CDN Value||-0.26%||VGG||Vanguard US Dividend Appreciation Index ETF||0.88%|
|CWO||RAFI Broad Emerging||0.91%||XCV||iShares Canadian Value Index ETF||-0.48%||CUD||iShares US Dividend Growers Index ETF CAD-Hedged||0.15%|
|PXG||RAFI Global Fundamental||0.60%||VVL||Vanguard Global Value Factor Etf||0.35%||XDUH||iShares Core MSCI US Quality Dividend Index ETF CAD-Hedged||1.07%|
|PZC||RAFI CDN Small-Mid Fundam||0.24%||Momentum:||XDU||iShares Core MSCI US Quality Dividend Index ETF||1.22%|
|YXM/b||Morningstar US Momentum (Unh)||0.22%|
|Min Vol:||ZXM/b||Morningstar Intl Momentum (Unh)||0.39%|
|VVO||Vanguard Global Minimum Volatility Etf||-0.23%||WXM||Morningstar CDN Momentum||0.00%||Multi-Factors:|
|XMW||MSCI Min Vol World||0.80%||VMO||Vanguard Global Momentum Factor Etf||0.50%||XFC||iShares Edge MSCI Multifactor Canada Index ETF||-0.21%|
|XMI||MSCI Min Vol EAFE||0.11%||Liquidity:||XFS||iShares Edge MSCI Multifactor USA Index ETF||0.08%|
|XMM||MSCI Min Vol Emerging||1.33%||VLQ||Vanguard Global Liquidity Factor Etf||0.15%||XFI||iShares Edge MSCI Multifactor EAFE Index ETF||0.41%|
|XMU||MSCI Min Vol US||1.13%||Quality:||Low Risk Weighted:|
|XMV||MSCI Min Vol Canada||-0.33%||ZEQ||BMO MSCI Europe High Quality Hedged To CAD Index ETF||-0.25%||RWE||First Asset MSCI Europe Low Risk Weighted ETF||-0.15%|
|week of:||Dec 11-15, 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||-0.18%|
|EXGG||Excel Global Growth Asset Allocation Etf||0.24%||HAC||Horizons Seasonal Rotation ETF||0.00%|
|EXGB||Excel Global Balanced Asset Allocation Etf||0.28%||HRA||Horizons Global Risk Parity ETF||0.88%|
|HHF||Horizons Morningstar Hedge Fund Index ETF||1.39%|
|DWG||PowerShares DWA Global Momentum Index ETF||0.38%|
|SID||First Asset US Trendleaders Index Etf||0.59%|
|XTR||iShares Diversified Monthly Income ETF||-0.09%|
|FIE||iShares Canadian Financial Monthly Income ETF||-0.13%|
|ZMI||BMO Monthly Income ETF||0.00%|
|CBD||iShares Balanced Income CorePortfolio Index ETF||0.13%||FUT||First Asset US Tactical Sector Allocation Index ETF||0.72%|
|ETP||First Trust Global Risk Managed Income Index ETF||0.21%||PRP||#N/A||#N/A|
|CBN||iShares Balanced Growth CorePortfolio Index ETF||0.66%|
|week of:||Dec 11-15, 2017||ETF Strategists & ETFs of ETFs||Source:||ETFinsight/Bloomberg|
iShares – Turnill: 3 key investing themes to know in 2018 => Click HERE!
Vanguard – Robots will build better jobs => Click HERE!
Horizons ETFs – Thackray’s December Newsletter => click HERE!
Purpose Investments / Redwood Asset Management – Switch Listing Venue for some CEFs and UTFs from TMX to NEO Exchange => Click HERE!
Part of the rationale? Simple economics – as in the benefit of having NEO apply the same fee schedule to Closed End Funds as that applied to ETFs => Click HERE!
WisdomTree – Exchange ratios announced for Questrade ETFs => Click HERE!
Sphere – Confirms approval of transaction with Evolve => Click HERE!
Weekly volume history to Dec 15, 2017:
Top and Bottom performing ETFs for the week of Dec 11-15, 2017:
|Ticker||Name||% Change||Avg Price||Weekly Volume||$ Volume traded|
|Top Performers||week of||Dec 11-15, 2017|
|CALL CN Equity||Evolve US Banks Enhanced Yield ETF||6.27%||$21.19||28,480||$603,597|
|XBM CN Equity||iShares S&P/TSX Global Base Metals Index ETF||5.84%||$13.20||234,865||$3,134,678|
|ZJG CN Equity||BMO Junior Gold Index ETF||5.72%||$8.48||234,239||$1,999,396|
|ZMT CN Equity||BMO Equal Weight Global Base Metals Hedged to CAD Index ETF||4.03%||$11.68||90,542||$1,060,819|
|XMA CN Equity||iShares S&P/TSX Capped Materials Index ETF||3.35%||$12.92||676,146||$8,748,095|
|CYBR CN Equity||Evolve Cyber Security Index ETF||3.14%||$20.81||11,727||$244,067|
|FLUS CN Equity||Franklin Libertyqt US Equity Index Etf||3.07%||$21.82||416,105||$9,087,651|
|HMMJ CN Equity||Horizons Marijuana Life Sciences Index ETF||2.92%||$15.15||4,782,293||$72,505,192|
|ZGD CN Equity||BMO Equal Weight Global Gold Index ETF||2.83%||$8.95||230,814||$2,055,762|
|MXF CN Equity||First Asset Can-Materials Covered Call ETF||2.64%||$14.22||60,534||$871,151|
|HEE CN Equity||Horizons Enhanced Income Energy ETF||-2.81%||$11.70||41,001||$481,144|
|HXE CN Equity||Horizons S&P/TSX Capped Energy Index ETF||-3.36%||$19.49||47,839||$943,116|
|OXF CN Equity||First Asset Can-Energy Covered Call ETF||-3.42%||$8.70||25,939||$226,506|
|XEG CN Equity||iShares S&P/TSX Capped Energy Index ETF||-3.54%||$11.74||15,618,001||$183,466,600|
|ZEO CN Equity||BMO Equal Weight Oil & Gas Index ETF||-3.73%||$10.62||3,568,508||$37,980,551|
|HNY CN Equity||Horizons Natural Gas Yield ETF||-4.12%||$10.74||39,648||$425,343|
|ZJO CN Equity||BMO Junior Oil Index ETF||-4.24%||$12.30||89,461||$1,099,664|
|HUN CN Equity||Horizons Natural Gas ETF||-4.53%||$5.63||192,673||$1,083,752|
|HUV CN Equity||BetaPro S&P 500 VIX Short-Term Futures ETF||-6.97%||$5.12||121,513||$623,765|
|CCX CN Equity||Auspice Canadian Crude Oil Index ETF||-12.18%||$8.46||190,429||$1,543,897|
Top Performing ETFs for the week: Strength in Base Metals and Gold, alongside notable volumes in the Marijuana Life Sciences ETF on the + side.
Bottom Performing ETFs for the week: Energy under pressure – see the above comment in relation to Western crude. You can bet that BoC Governor Poloz is going to be keeping a very close eye on that Oil differential … which could become problematic as we roll into 2018 with further production increases coming online…