Bitcoin: I’ll give you Volatility – Remember how, until Bitcoin started grabbing all the headlines a few months ago, it was all “Trump tweeted this …”, “Trump tweeted that…”?At the time, Bitcoin short-circuiting the Prez’s endless stream of Tweets was welcome … Now … not so sure anymore… To top it all off, Bitcoin ETFs are in the cards…
Really? Oh yeah – makes perfect sense, mind you. ETFs are all about transparency and price discovery and … well, Bitcoin is all about price discovery! Suffice to say, investors in these futures based ETFs might experience their share of frustration, when comes to understand exactly the kind of tracking “challenge” they have embarked on… With the futures themselves challenged to “discover the price”, a price they may experience significant disconnects with at times, if I didn’t mind the inappropriate language here, I’d use words starting with a c and an f, to describe the world of “opportunity” these new ETFs will provide. (C is for cluster … in case you wondered 🙂
As for myself, I don’t expect to play that game, and for now, I am, as they say … kinda suffering from Bitcoin headlines overdose currently. But again, for those missing volatility in equity markets, I suppose there is always going for a walk on the wild side of Bitcoin. That ought to do it for ya! Bonne chance!
Oh … and the transparency with Bitcoin? Fugget ’bout it, as wise guys would say in the movies – isn’t a large part of Bitcoin’s appeal precisely that it does away with it pretty much entirely?
- Trump’s tax cuts – made it under the wire, with the cuts, from what I have seen, benefiting mostly corporations and the Ueber wealthy. Everyone else … suckers!
- Megacap US Tech Cos – Stand to enjoy the immediate benefit of repatriating cash held abroad at the lower tax rates , AND, after that move toward declaring profits where revenues earned – a move which ought to alleviate some of the pressure various governments have exercised on them on account of their failure to pay their fair share of taxes in various countries.
- Barron’s – Carried a piece suggesting Apple will be the first Co to reach the $1 Trillion marketcap level, while also opining on how long it might take some of their tech brethren, of the Facebook; Microsoft; Google; and Amazon persuasion. Call me stupid, but if I read this correctly, notwithstanding fears of FANG stocks’ valuation having possibly reached bubble of the year status in 2017, the takeaway is … Barron’s sees these stocks heading higher still.
- Boeing – In what has to be seen as a reaction to the Airbus/Bombardier deal, is eyeing Brazil’s Embraer. An interesting question in the context of the close to 300% punitive damages the US has reaffirmed recently for the C Series is: if Boeing has to resort to taking over Embraer to fill a gap in its product line-up, doesn’t it follow that they indeed didn’t have the “right” offering to satisfy Delta? And, thus, couldn’t one argue that they were only “harmed” by Bombardier because they didn’t have the right product? That would sound reasonable to me…
- Canadian PM Justin Trudeau – Got himself on the naughty list with the Ethics Commissioner, on account of his / his family’s trip(s) to the Aga Khan’s private Island…
Latest market numbers as seen through ETFs providing exposure to the most commonly referred to benchmarks:
|XIU||S&P/TSX 60||0.55%||PXG||RAFI Global Fundamental||-0.04%||VCN||FTSE Canada All Cap Index ETF||0.80%|
|XIC||S&P/TSX Capped Composite||0.78%||PXS||RAFI US Fundamental Index||-0.63%||VCE||FTSE Canada Index ETF||0.58%|
|CRQ||RAFI CDN Fundamental||0.63%||QQC/F||NASDAQ 100 CAD Hedged||-0.05%||VUN||CRSP US Total Market Index Unhedged||-0.77%|
|XSP||S&P 500 CAD Hedged||0.26%||PZC||RAFI CDN Small-Mid Fundam||1.47%||VSP||S&P 500 CAD Hedged||0.30%|
|XUS||S&P500||-0.95%||VXC||FTSE All-World Ex Canada Index ETF||-0.36%|
|XMU||MSCI Min Vol US||-1.85%||XXM/b||Morningstar US Value (Unh)||1.09%||VEF||FTSE Developed ex North-Am CAD H||0.65%|
|CLU||RAFI US Fund 1000 CAD H||0.65%||YXM/b||Morningstar US Momentum (Unh)||0.17%||VDU||FTSE Developed ex North-America||-0.06%|
|XSU||Russell 2000 CAD Hedged||0.83%||FXM||Morningstar CDN Value||1.15%||VE||FTSE Developed Europe||0.14%|
|XIN||MSCI EAFE CAD Hedged||0.67%||WXM||Morningstar CDN Momentum||1.56%||VA||FTSE Developed Asia Pacific||-0.40%|
|XEH||MSCI Europe IMI CAD H||0.32%||VXM/b||Morningstar Intl Value (Unh)||0.35%||VEE||FTSE Emerging Mkts||1.39%|
|XEC||MSCI EM IMI||0.75%||ZXM/b||Morningstar Intl Momentum (Unh)||0.23%||HAZ||Active Global Dividends||-0.73%|
|XMM||MSCI Min Vol Emerging||0.18%||RWE||MSCI Europe Low Risk Weighted (H)||0.04%||HHF||Morningstar Hedge Fund Index||0.69%|
|CWO||RAFI Broad Emerging||0.57%||HMF||Auspice Managed Futures||1.56%|
|CJP||RAFI Fundam Japan CAD H||1.75%||ZDJ||Dow Jones CAD Hedged||0.38%||HAC||Seasonal Rotation||0.89%|
|CDZ||CDN Div Aristocrats||-0.15%||ZEQ||MSCI Europe High Quality CAD H||0.54%||HPR||Active Preferred Shares||1.26%|
|week of:||Dec 18-22, 2017||OVERALL||Source:||ETFinsight/Bloomberg|
Respectively through available “FACTORS” (Smart or Strategic Beta) ETFs:
|CRQ||RAFI CDN Fundamental||0.63%||VXM/b||Morningstar Intl Value (Unh)||0.35%||CDZ||iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||-0.15%|
|CLU||RAFI US Fund 1000 CAD H||0.65%||XXM/b||Morningstar US Value (Unh)||1.09%||XHU||iShares US High Dividend Equity Index ETF||-0.42%|
|CJP||RAFI Fundam Japan CAD H||1.75%||FXM||Morningstar CDN Value||1.15%||VGG||Vanguard US Dividend Appreciation Index ETF||-0.89%|
|CWO||RAFI Broad Emerging||0.57%||XCV||iShares Canadian Value Index ETF||0.67%||CUD||iShares US Dividend Growers Index ETF CAD-Hedged||0.34%|
|PXG||RAFI Global Fundamental||-0.04%||VVL||Vanguard Global Value Factor Etf||0.32%||XDUH||iShares Core MSCI US Quality Dividend Index ETF CAD-Hedged||0.14%|
|PZC||RAFI CDN Small-Mid Fundam||1.47%||Momentum:||XDU||iShares Core MSCI US Quality Dividend Index ETF||-1.15%|
|YXM/b||Morningstar US Momentum (Unh)||0.17%|
|Min Vol:||ZXM/b||Morningstar Intl Momentum (Unh)||0.23%|
|VVO||Vanguard Global Minimum Volatility Etf||-0.26%||WXM||Morningstar CDN Momentum||1.56%||Multi-Factors:|
|XMW||MSCI Min Vol World||-1.60%||VMO||Vanguard Global Momentum Factor Etf||-0.28%||XFC||iShares Edge MSCI Multifactor Canada Index ETF||1.91%|
|XMI||MSCI Min Vol EAFE||-1.09%||Liquidity:||XFS||iShares Edge MSCI Multifactor USA Index ETF||-1.06%|
|XMM||MSCI Min Vol Emerging||0.18%||VLQ||Vanguard Global Liquidity Factor Etf||-0.18%||XFI||iShares Edge MSCI Multifactor EAFE Index ETF||0.70%|
|XMU||MSCI Min Vol US||-1.85%||Quality:||Low Risk Weighted:|
|XMV||MSCI Min Vol Canada||-0.23%||ZEQ||BMO MSCI Europe High Quality Hedged To CAD Index ETF||0.54%||RWE||First Asset MSCI Europe Low Risk Weighted ETF||0.04%|
|week of:||Dec 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:
|HGM||Horizons Managed Global Opportunities ETF||-0.18%|
|EXGG||Excel Global Growth Asset Allocation Etf||-1.52%||HAC||Horizons Seasonal Rotation ETF||0.89%|
|EXGB||Excel Global Balanced Asset Allocation Etf||-0.24%||HRA||Horizons Global Risk Parity ETF||-0.39%|
|HHF||Horizons Morningstar Hedge Fund Index ETF||0.69%|
|DWG||PowerShares DWA Global Momentum Index ETF||-0.42%|
|SID||First Asset US Trendleaders Index Etf||0.23%|
|XTR||iShares Diversified Monthly Income ETF||-0.17%|
|FIE||iShares Canadian Financial Monthly Income ETF||0.26%|
|ZMI||BMO Monthly Income ETF||-0.30%|
|CBD||iShares Balanced Income CorePortfolio Index ETF||-0.31%||FUT||First Asset US Tactical Sector Allocation Index ETF||0.21%|
|ETP||First Trust Global Risk Managed Income Index ETF||-0.20%||PRP||Purpose Conservative Income Fund||0.20%|
|CBN||iShares Balanced Growth CorePortfolio Index ETF||0.23%|
|week of:||Dec 18-22, 2017||ETF Strategists & ETFs of ETFs||Source:||ETFinsight/Bloomberg|
iShares – Boivin: The Real Story behind low interest rates
Vanguard – Vanguard’s 2018 Global Economic and market outlook => click HERE!
BMO ETFs – BMO discontinues standard DSC purchase option => Click HERE!
Horizons ETFs – Constituents of Marijuana ETF expanded => Click HERE!
Purpose Investments – Closes aquisition of Logicq => click HERE!
WisdomTree – 2018 ETF Industry and market outlook => click HERE!
Top and Bottom performing ETFs for the week of Dec 18-22, 2017:
|Ticker||Name||% Change||Avg Price||Weekly Volume||$ Volume traded|
|Top Performers||week of||Dec 18-22, 2017|
|ZJO CN Equity||BMO Junior Oil Index ETF||8.28%||$12.49||130,965||$1,655,993|
|ZJG CN Equity||BMO Junior Gold Index ETF||6.10%||$8.93||359,188||$3,212,334|
|OXF CN Equity||First Asset Can-Energy Covered Call ETF||5.31%||$8.72||82,504||$720,858|
|HPF CN Equity||Energy Leaders Plus Income ETF||5.03%||$5.31||215,137||$1,143,250|
|XEG CN Equity||iShares S&P/TSX Capped Energy Index ETF||4.89%||$11.76||17,649,484||$206,984,950|
|XBM CN Equity||iShares S&P/TSX Global Base Metals Index ETF||4.63%||$13.99||329,290||$4,589,427|
|HXE CN Equity||Horizons S&P/TSX Capped Energy Index ETF||4.47%||$19.42||48,952||$947,070|
|NXF CN Equity||First Asset Energy Giants Covered Call Etf||4.38%||$7.95||103,973||$820,503|
|MXF CN Equity||First Asset Can-Materials Covered Call ETF||4.30%||$14.77||126,565||$1,877,792|
|HEE CN Equity||Horizons Enhanced Income Energy ETF||4.29%||$11.70||199,761||$2,318,788|
|XMU CN Equity||iShares Edge MSCI Min Vol USA Index ETF||-1.85%||$46.17||54,078||$2,501,839|
|PGL CN Equity||PowerShares Ultra Liquid Long Term Government Bond Index ETF||-1.89%||$23.52||140,100||$3,298,954|
|XRB CN Equity||iShares Canadian Real Return Bond Index ETF||-2.10%||$24.38||283,270||$6,898,002|
|ZLU CN Equity||BMO Low Volatility US Equity ETF||-2.22%||$31.65||954,540||$30,232,971|
|HTB CN Equity||Horizons US 7-10 Year Treasury Bond ETF||-2.37%||$52.16||8,228||$428,742|
|CGR CN Equity||iShares Global Real Estate Index ETF||-2.40%||$28.94||62,083||$1,796,794|
|RIG CN Equity||RBC Quant Global Infrastructure Leaders ETF||-2.45%||$19.86||34,127||$672,681|
|ZFL CN Equity||BMO Long Federal Bond Index ETF||-2.52%||$17.62||170,065||$2,981,822|
|ZTL CN Equity||BMO Long-Term US Treasury Bond Index ETF||-2.70%||$50.39||11,825||$602,865|
|ZGI CN Equity||BMO Global Infrastructure Index ETF||-3.00%||$35.49||169,381||$5,982,196|
Top Performing ETFs for the week: Notable strength in energy related ETFs, coming back from recent weakness …
Bottom Performing ETFs for the week: Logical weakness from bond and proxies in light of tax cut, and potential implication for rates/yields going forward