Let’s take a look at the First Asset Morningstar Canada Momentum Index ETF (WXM on the TSX) as well as its constituents with the help of our PF Scan tool. It enables us to see where the portfolio sits on a wealth creation basis (return on capital divided by cost of capital)(Y axis) and a future growth value basis (X axis). Download
As of Monday’s close, First Asset’s ETF (see Pf in the graphic of the attachment) traded at a premium to its constituents’ future growth value. Six constituents trade at a discount (CU, AC.B, T, BCE, PJC.A & ACO.X) and one company is destroying wealth for its shareholders (BIR).
*Weight of a missing company in StockPointer is allocated to cash.