Bitcoin: I’ll give you Volatility (TWTW – Dec 18-22, 2017)

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?

Latest Developments:

  • 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:

ticker name change ticker name change ticker name change
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:

ticker name change ticker name change
RAFI: Value: Yield:
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:

ticker name change ticker name change ticker name change
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

Providers’ News:

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
Bottom Performers
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

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