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Market wrap June 16, 2017: Grocery selloff dampens markets
6/24/2018 1:10:43 AM
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By Fund Library News Wire  | Friday, June 16, 2017


By Mike Keerma

* Grocery selloff dampens markets.
* First Asset to terminate Canadian equity ETF.
* Blackrock expands iShares core dividend ETF lineup.
* Canoe to merge funds.

* Grocery selloff dampens markets. The S&P 500 Composite Index and the Nasdaq Composite Index weakened marginally on the week, as investors sold off shares in the intensely competitive grocery sector on news that online retailer Inc. (NASDAQ: AMZN) will acquire grocery chain Whole Foods Market Inc. (NASDAQ: WFM) in a US$13.7 billion buyout. Gains in the energy sector on Friday helped support markets towards the end of the week. However, an overall weekly loss of -1.1% in crude oil contributed to the -1.8% retreat in Toronto’s benchmark S&P/TSX Composite Index on the week.

Fearing the impact of “Amazon effect,” which has already hit U.S. department, book, and electronics chains where Amazon has become a competitor, investors bailed out of the big U.S. grocery chains, including Kroger Co. (NYSE: KR), Costco Wholesale Corp. (NASDAQ: COST), Wal-Mart Stores Inc. (NYSE: WMT), and Target Corp. (NYSE: TGT).

And speaking of the “Amazon effect,” shares of beleaguered Canadian department store chain Sears Canada Inc. (TSX: SCC) took another hit last week as the company warned that it had “significant doubt” about its ability to continue operating as a going concern. The ownders of the separate U.S. company, Sears Holdings Corp. (NASDAQ: SHLD) made a similar announcement back in March.


* First Asset to terminate Canadian equity ETF. First Asset Investment Management Inc. announced plans to terminate its First Asset Cambridge Core Canadian Equity ETF (TSX: FCE) effective Aug. 21. The units will be delisted on Aug. 18, and net assets will be liquidated and distributed to unitholders of record.

* Blackrock expands iShares core dividend ETF lineup. BlackRock Asset Management Canada has expanded its Core series of iShares ETFs with the launch of a new suite of MSCI Quality Dividend Index ETFs. The new ETFs will invest in companies with above-average dividend yields and stable or growing dividends. Portfolios will seek companies with the capacity to sustain dividends into the future, using financial quality metrics, such as strong return on equity and low earnings variability. Investors will have the option of choosing between diversified portfolios of Canadian, U.S., or global securities, with foreign currency exposure hedged or unhedged. The funds, listed in the table below, will seek to replicate MSCI High Dividend Yield Indices.

* Canoe to merge funds. Canoe Financial LP announced plans to merge five Canoe Funds, as a result of an ongoing product review. The mergers are expected to take place Aug. 18. In a release, Darcy Hulston, President and Chief Executive Officer, said “These proposed mergers are intended to scale certain funds with like investment strategies and offer a better potential for investors to seek cost savings.” The table below shows the terminating and continuing funds.

Check Fund Library’s Market Activity page regularly for active updates on key market indexes and commodities.

@FundLibrary – Follow Fund Library on Twitter for daily information and updates.


© 2017 by Fund Library. All rights reserved. Reproduction in whole or in part by any means without prior written permission is prohibited.

The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.

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