The second half of the year kicked off with some major developments in the crypto space. The crypto markets saw an immediate surge following the enactment of the GENIUS Act, a landmark piece of U.S. legislation that establishes a comprehensive regulatory framework for stablecoins.
The earnings environment proved to be stronger than anticipated. Tech giants Microsoft and Meta’s heavy investment in AI appears to have paid off. Microsoft became the second company to join the $4 trillion market cap club after its Azure division posted a 39% rise in sales during its fourth quarter. Meta grew earnings by 38% from previous year with CEO Mark Zuckerberg saying Meta can continue to spend heavily in AI because the company’s core advertising business is the real engine.
Microsoft single-stock ETFs experienced some of the best total returns in the month of July. Harvest Microsoft Enhanced High Income Shares ETF (MSHE-T) had a total return of approximately 8.8%. The Microsoft (MSFT) Yield Shares Purpose ETF (MSFY-NE) and Harvest Microsoft High Income Shares ETF (MSFH-T) had total returns of 7.04% and 7.01% respectively.
Total returns for Meta single-stock ETFs like Harvest Meta Enhanced High Income Shares ETF (METE-T) and Meta (META) Yield Shares Purpose ETF (YMET-NE) were 6.28% and 5.65% respectively.
Additions
July was host to a modest eleven new ETFs.
Ninepoint ETFs
Ninepoint Partners LP listed five new funds on the Toronto Stock Exchange. The Ninepoint Global Infrastructure Fund (INFR-T) offers global exposure to infrastructure companies that are known for stable cash flows through the business cycle.
The Ninepoint Capital Appreciation Fund (NCAP-T) primarily invests, both directly and indirectly, in a mix of equity and fixed income securities and mutual funds. The remaining three funds, Ninepoint Gold and Precious Minerals Fund (GLDE-T), Ninepoint Gold Bullion Fund (GBUL-T), and Ninepoint Silver Bullion Fund (SBUL-T) focus on investment in the commodity sector.
Hamilton ETFs
Hamilton Capital Partners launched the DayMAX suite of ETFs on the Cboe Canada exchange. The Hamilton Enhanced Canadian Equity DayMAX™ ETF (CDAY-NE) provides exposure to Canadian equities. Hamilton Enhanced U.S. Equity DayMAX™ ETF (SDAY-NE) offers exposure to U.S. equities. Hamilton Enhanced Technology DayMAX™ ETF (QDAY-NE) invests primarily in U.S. tech equities. All funds are actively managed and employs an ultra-short-term option strategy and modest 25% leverage to generate supplemental returns from its underlying holdings.
Other launches
IA Clarington Investments Inc. issued the IA Clarington Agile Global Total Return Income Fund (GTRI-T). Subadvised by Agile Investment Management LLC, the fund’s objective is to provide income and the potential for long-term capital appreciation by investing primarily in fixed income securities of governments, government-related issuers, corporations and other issuers located anywhere in the world.
FT Portfolios Canada Co. launched the First Trust Long/Short Equity ETF (FTLS-T), which seeks long-term total return by investing in both a long and short portfolio of U.S. exchange listed equity securities and index futures contracts. The fund will invest its net assets in the U.S. listed ETF of the same name, which is managed by an affiliate of First Trust Canada that has substantially similar investment objectives as the fund itself.
J.P. Morgan Asset Management announced the launch JPMorgan Global Select Equity Active ETF (JGLO-T), the Canadian version of the fund listed on the The Nasdaq Stock Market. The fund invests primarily in equity securities of companies in global developed markets.
Amy Mak is ETF Specialist at Inovestor.
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