As summer fades and autumn begins, September is a month that embraces a variety of transitions.
The Bank of Canada and the Federal Reserve handed out interest rate cuts, lowering its respective policy rates by 25 basis points each. This marked the first rate reduction for the Federal Reserve since December.
The artificial intelligence theme continues to power markets. For instance, Nvidia announced a US$100 billion investment in ChatGPT to strengthen AI infrastructure.
Meanwhile, gold extended its rally on efforts by China to bolster its role in the global bullion market. The metal is on track towards more record-breaking highs.
September’s best performing Canadian ETFs continues to be in the materials sector. The Harvest Global Gold Giants Index ETF (HGGG-T) had a price return of 23.66%. BMO Junior Gold Index ETF (ZJG-T) returned 21.81% for the month. The BetaPro Canadian Gold Miners 2x Daily Bull ETF (GDXU-T), due to its 2X leveraged exposure strategy, provided an astonishing 43.96% price return result.
Additions
September received 50 new fund options for investors to choose from for their portfolios.
Hamilton ETFs
Hamilton Capital Partners launched USD versions of two of its funds in the YIELD MAXIMIZER suite. The Hamilton Technology YIELD MAXIMIZER™ ETF (QMAX-U-T) offers exposure to a portfolio of primarily large-cap U.S. technology equity securities, while the Hamilton U.S. Equity YIELD MAXIMIZER™ ETF (SMAX-U-T) provides exposure to U.S. equities across multiple sectors. Both funds employ an active covered call strategy to reduce volatility and create an attractive monthly income.
Mackenzie ETFs
Mackenzie Investments added four funds to the market. The Mackenzie Defensive Tilt ETF (MDEF-T) and Mackenzie Cyclical Tilt ETF (MCYC-T) were constructed to align with the current economic cycle. The Mackenzie Canadian High Dividend Yield ETF (MHDC-T) and the Mackenzie US High Dividend Yield ETF (MHDU-T) aim to invest in a combination of dividend-paying equity securities and ETFs, while also writing put and/or call options on such securities. The objective is to enhance yields and seek growth potential, in Canada and the U.S. respectively.
Evolve ETFs
Evolve Funds Group launched two funds in its UltraYield series. The Evolve US Equity UltraYield ETF (BIGY-T) invests in leading U.S. companies and employs an actively managed covered call strategy with the use of a modest leverage factor of up to 1.33x. The Evolve Canadian Equity UltraYield ETF (CANY-T) invests in leading Canadian companies and also employs a covered call strategy with modest leverage to generate enhanced income. These solutions delivers cash distributions twice per month for more frequent investor cash flow.
National Bank ETFs
National Bank Investments Inc. unveiled its largest offerings in recent months with twenty funds.
NBI Active U.S. Equity ETF (NUSA-F-T) is the hedged version of the already existing fund, whose objective is to invest in a portfolio comprised primarily of common shares of U.S. companies. The fund is actively managed with strategies that differ from stock market indices.
NBI Canadian Core Plus Bond Fund (NCPB-T) invests in a diversified portfolio composed mainly of fixed-income securities of Canadian issuers with various maturities and credit ratings.
NBI U.S. Equity Fund (NBUE-T, NBUE-F-T) and NBI SmartData U.S. Equity Fund (NSDU-T, NSDU-F-T) both provide exposure to the U.S. market.
NBI SmartData International Equity Fund (NSDI-T, NSDI-F-T) invests in a portfolio mainly composed of equities of foreign companies located outside North America and in American Depository Receipts (ADR) traded on recognized stock exchanges.
NBI Innovators Fund (NINV-T, NINV-F-T) focuses on global companies whose activities are partially focused on scientific and technological research.
NBI Quebec Growth Fund (NBQC-T) invests in many sectors of the Quebec economy and will target corporations whose head office is in Quebec or who do a substantial part of their business in Quebec.
Three target maturity bond funds were also added as low risk fixed income solutions for portfolio diversification. Each NBI Fund will invest primarily in investment-grade debt securities of North American issuers with an effective maturity date in 2029 (NTGD-T), 2030 (NTGE-T), or 2031 (NTGF-T).
National Bank Investments enlisted PineStone Asset Management Inc. to sub-advise several of its global and international funds.
NBI Global Equity Fund (NBGE-T, NBGE-F-T) provides access to the global markets by investing in a diversifies portfolio of common and preferred shares listed on recognized stock exchanges.
NBI International Equity Fund (NBIE-T, NBIE-F-T) invests in a portfolio comprised primarily of common shares of companies located outside of North America selected using a high conviction investment approach.
NBI Global Small Cap Fund (NBSC-T, NSBC-F-T) focuses on small- and mid-cap companies located around the world, with investments in emerging markets not to exceed 20% of the fund’s net assets.
BetaPro ETFs
BetaPro by Global X launched three new leveraged ETFs on the TSX exchange.
The BetaPro Nasdaq-100 Daily Inverse ETF (QQI-T) offers the inverse exposure to the daily performance of the NASDAQ-100® Index, capitalizing from declines in tech-focused index.
The BetaPro 3x Russell 2000 Daily Leveraged Bull Alternative ETF (TRSL-T) and the BetaPro -3x Russell 2000 Daily Leveraged Bear Alternative ETF (SRSL-T) offers three-times (3X) and minus three-times (-3X) exposure to the performance of the Russel 2000 Index. The objective of these funds is to transform small market movements in U.S. small cap companies into substantial positive gains.
Sun Life ETFs
Sun Life Global Investments listed ETF versions on three of its most popular fixed income funds. The Sun Life Core Advantage Credit Private Pool (SLCA-T) invests directly in debt securities or indirectly by investing in mutual funds that invest in such securities. The Sun Life MFS Global Core Plus Bond Fund (SLGC-T) seeks total return through investment in investment grade and non-investment grade debt securities of issuers located anywhere in the world. The Sun Life Crescent Specialty Credit Private Pool (SLSC-T) seeks to provide income and capital preservation by investing primarily in non-investment grade high yield debt securities.
Harvest ETFs
Harvest Portfolios Group added three more single stock ETFs to its Enhance High Income Shares series, which holds the underlying stock while employing an active covered call writing strategy to provide a monthly distribution to its unitholders. The Enhanced series applies a modest 25% leverage for higher income and growth potential. The three companies that these newly listed funds include Robinhood Markets (HODY-T), Circle Internet Group (CRCY-T), Reddit (RDDY-T), and SoFi Technologies (SOFY-T).
CI Financial ETFs
CI Global Asset Management issued three target maturity bond funds to provide investors with fixed income solutions. Each CI Bond Fund will invest in a portfolio primarily made up of investment-grade bonds with an effective maturity date in 2028 (CTMA-T), 2029 (CTMB-T), or 2030 (CTMC-T).
Other launches
Picton Mahoney Asset Management listed the PICTON Income Fund (PFIN-T), a low-risk fund which invests primarily in global income securities while engaging in hedging strategies for downside risk protection.
BMO Asset Management introduced the BMO BBB CLO ETF (ZBBZ-NE, ZBBZ-F-NE, ZBBZ-U-NE). The funds offer investors exposure to BBB-rated collateralized loan obligations (CLOs) issued outside of Canada.
Purpose Investments added a USD version of the Purpose Global Bond Fund ETF (BND-U-T) for investors who wish to hold the fund directly in US dollars. The fund invests primarily in global investment-grade fixed income. It is actively managed by Neuberger Berman Canada.
TD Asset Management launched the TD North American Dividend Fund (TDNA-T), which offers investors access to a diversified portfolio of income-producing North American securities.
Ninepoint Partners LP listed the ETF series of its Ninepoint Global Select Fund (GBSL-T). The Fund seeks to capture the growth potential of dividend paying and non-dividend paying global equities and provide capital appreciation by investing in a concentrated portfolio of global innovative leaders.
Lastly, J.P.Morgan Asset Management expanded its offerings with two fixed income funds. The JPMorgan US Bond Active ETF (JBND-T) invests in a portfolio of intermediate term, high-quality bonds across sectors of the U.S. investment-grade market. The JPMorgan US Ultra-Short Income Active ETF (JPST-T) also focuses on investment-grade debt instruments but with the endeavour of maintaining a duration of one year or less.
Amy Mak is ETF Specialist at Inovestor.
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