By Mike Keerma
The U.S. economy added 157,000 new jobs in July, quite a bit less than the
consensus expectation of 200,000-plus. Still, the U.S. unemployment rate
ticked down to a near 20-year low of 3.9%, even as hourly wages stagnated.
These data held out a faint hope that the Federal Reserve might just delay
its expected September rate hike, which juiced market sentiment a bit at
the end of the week. Even a 7% widening of the U.S. trade deficit in June
and rumors of more tariffs by China wasn’t enough to cool investors’ ardor
for equities. Symptomatic of that fresh interest in the risk-on trade was
the upside on shares of
Apple Inc. (NASDAQ: AAPL)
following Tuesday’s bubbly earnings release, which pushed the storied maker
of all things “i” to a market capitalization of over US$1 trillion, the
first company in U.S. history to break the “t” barrier. The
S&P 500 Composite Index
gained 0.8% on the week as a consequence, while the
Nasdaq Composite Index
advanced 1.0%. Toronto’s
S&P/TSX Composite Index
edged up only 0.2% on the week, as investors didn’t find anything much
appealing in either the financial or energy sectors.
dropped 0.5% on the week, while
continued its year-to-date slide, with a loss of 0.8% on the week.
* Horizons to offer ETFs with 0% management fee.
Horizons ETFs Management
Horizons Conservative TRI ETF Portfolio (TSX: HCON)
Horizons Balanced TRI ETF Portfolio (TSX: HBAL), which invest exclusively in Horizons TRI ETFs and use a total return swap
investment structure designed to deliver returns in a low-cost and
tax-efficient manner. Both HCON and HBAL use an asset allocation strategy
that is rebalanced semi-annually.
While the two ETFs are not subject to any topline management fees or
operating costs, there are indirect management fees on the underlying
Horizons TRI ETFs held by HCON and HBAL, which does give the funds an
management expense ratio (MER). Based on the initial portfolios, the total
MERs of HCON and HBAL will be 0.15% and 0.16%, respectively, and will not
exceed 0.17% and 0.18%, respectively, as at any rebalance.
* WisdomTree launches new Japan and China ETFs.
WisdomTree Asset Management Canada, Inc.
launched its WisdomTree Japan Equity Index ETF (TSX: JAPN) and the
non-hedged units of the WisdomTree ICBCCS S&P China 500 Index ETF (TSX:
WisdomTree Japan Equity Index ETF
tracks the WisdomTree Japan Equity Index CAD, with exposure to
dividend-paying stocks within Japan and traded on the Tokyo Stock Exchange
that derive less than 80% of their revenue from sources in the Japanese
market. By excluding companies that derive 80% or more of their revenue
from Japan, the index is tilted towards companies with a more significant
global revenue base. The hedged version of the fund (JAPN.B) is designed to
provide exposure to Japanese equity markets, while neutralizing exposure to
fluctuations of the Japanese yen movements relative to the Canadian dollar.
WisdomTree ICBCCS S&P China 500 Index ETF
tracks the S&P China 500 Index CAD of the largest 500 eligible
companies from the broader S&P Total China BMI Index, representing the
entire universe of Chinese companies, including A-Shares and offshore
listings that meet eligible criteria. The underlying Index is weighted
about 48.5% to China A-Shares as of June 30, 2018.
* Horizons debuts active EM bond ETF.
Horizons ETFs Management
Horizons Active Emerging Markets Bond ETF (TSX: HEMB), which invests primarily in the fixed and floating rate debt securities of
emerging market issuers. The ETF will have global exposure to fixed rate
and floating rate instruments issued by sovereign, quasi-sovereign,
supranational, and corporate issuers. All U.S. dollar currency exposure is
hedged back to Canadian dollars.
* First Asset government bond ETF commences trading.
First Asset Investment Management Inc.
First Asset Enhanced Government Bond ETF (FGO: TSX), investing primarily in government debt, but may also invest in other debt
instruments across the credit spectrum including cash, corporate debt, and
debt and credit derivatives. U.S. dollar units trade under the FGO.U.
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