It was a strong start for the new year as the S&P 500 hit 7,000 for the first time ever. January also witnessed a rally in metals – both precious and industrial metals. Spot silver surpassed US$100 an ounce and gold topped US$5,000.
The Bank of Canada and the U.S. Federal Reserve held their respective policy interest rates unchanged.
Geopolitical headlines continue to cause market turbulence while earnings guidance points to the broadening out in the market. The resilience of the AI theme remain unwavering as the structural demand around AI through diversification across AI infrastructure, software, and cloud services becomes the story for AI spend.
The top performers for the month of January were funds that centered on Cameco. The SavvyLong (2X) Cameco ETF (CCOU-T) earned a whopping 73.87% one-month price return. The Harvest Cameco Enhanced High Income Shares ETF (CCOE-T) returned a 30.92% percentage increase while the Ninepoint Cameco HighShares ETF (CCHI-T) trailed slightly with a return of 29.22%.
Meanwhile, the Canadian ETF marketplace kick started the year with 25 new funds in January.
AGF ETFs
AGF Investments Inc. launched ETF series of two existing funds. The AGF American Growth Fund (AMGR-T) focuses on U.S. companies with exceptional corporate leadership and strong growth prospects across market cycles. The AGF Global Select Fund (AGSL-T) offers concentrated exposure to the growth potential of global equities. Both funds employ a bottom-up growth investment style and have a medium risk profile.
Hamilton ETFs
Hamilton Capital Partners Inc. made two additions to its HAMILTON CHAMPIONS™ suite of ETFs. The HAMILTON CHAMPIONS™ U.S. Technology Index ETF (QMVP-T) offers exposure to 25 U.S. technology companies with an emphasis on profitability. The fund is designed to track the returns of the Solactive HAMILTON CHAMPIONS™ U.S. Technology Index. The HAMILTON CHAMPIONS™ Utilities Index ETF (UMVP-T) is an equal-weight portfolio of blue-chip Canadian utilities, pipeline and telecom companies and tracks the performance of the Solactive Canadian Utility Services High Dividend Index. Both funds are low-cost solutions to sector investing with a 0.19% management fee.
Harvest ETFs
Harvest Portfolios Group Inc. launched eight new funds to its extensive offering. Expanding on its Enhanced High Income Shares ETFs TM series, the addition of six single-stock exchange-traded funds include the following recognizable U.S. companies: Block Inc. (BLKY-T), Johnson & Johnson (JNJY-T), CrowdStrike (CRWY-T), JPMorgan Chase & Co. (JPHE-T), Novo Nordisk A/S (NOVY-T), and Oracle Corporation (ORCY-T). This suite of funds will hold the underlying stock for growth potential and generate high monthly income through the use of modest leverage and an active covered call strategy.
Harvest also listed two new Premium Yield solutions on the TSX. The Harvest Premium Yield Canadian Bank ETF (HPYB-T) and the Harvest Premium Yield Enhanced ETF (HPYE-T) are the first funds to pay twice monthly. The strategy involves the use of both covered call and put options for income generation and downside volatility mitigation.
CI ETFs
CI Global Asset Management listed the ETF versions of the CI Equity+ Asset Allocation ETF Fund (CEQP-T) and the CI Balance+ Asset Allocation ETF Fund (CBAP-T). The Equity+ fund has long-term strategic asset allocation of approximately 92% equity securities and 8% in other assets. The Balance+ fund has a long-term strategic asset allocation of approximately 57% equity securities, 38% fixed-income securities and 5% in other assets. Both funds will be managed with added exposure to non-traditional assets such as digital assets (bitcoin) and/or commodities (gold bullion).
Fidelity ETFs
Fidelity Investments Canada expanded its offering with two new funds. The Fidelity Global Opportunities Long/Short Fund (FLSE-T), which invests primarily in long and short positions of equity securities of companies anywhere in the world that have growth or value characteristics, or both. The Fund may use leverage through the use of short selling of up to 50% of its net asset value and by investing in derivatives. The Fidelity American Equity Fund (FCAE-T) invests primarily in U.S. equity securities that the portfolio manager believes are undervalued in the marketplace.
Sun Life ETFs
SLGI Asset Management Inc. expanded its ETF lineup with two funds. The SLGI MFS Blended Research Low Vol Global Fund – ETF Series (SBLG-T) and the SLGI MFS Blended Research Low Vol International Fund – ETF Series (SBLI-T) both employ the proprietary Blended Research approach used by Sun Life Global Investments’ sub-advisor, MFS Investment Management (MFS).
Other launches
Lysander Funds Limited launched an ETF series of units of the Lysander-Canso U.S. Corporate Value Bond Fund (LYUV-U-T). The portfolio manager is Canso Investment Counsel Ltd. This fixed income fund invests primarily in U.S. debt and money market securities either denominated in USD or hedged to USD using forward currency contracts.
LongPoint Asset Management Inc. listed the Moat Active Premium Yield ETF (MOAT-T) on the TSX. This actively managed fund will primarily write out-of-the-money, shorter-dated cash-secured put options on North American securities to earn premiums.
Evolve Funds Group Inc. added the Evolve International Equity UltraYield ETF (INTY-T) to its offering. To enhance yield, as well as to mitigate risk and reduce volatility, the fund will employ a covered call option writing program. The fund will use modest leverage in order to seek to achieve its investment objective.
First Trust Portfolios Canada Co. listed the First Trust Bloomberg Nuclear Power ETF (RCTR-T) on the Toronto Stock Exchange. The fund seeks to replicate the performance of an index of companies that are exposed to nuclear power, initially the Bloomberg Nuclear Power Index. The investment strategy involves investing all or substantially all of its assets in the First Trust Bloomberg Nuclear Power ETF (“RCTR”), a U.S.-listed ETF.
Global X Investments Canada introduced a solution to invest in the tokenization and stablecoin ecosystem with the Global X Tokenization Ecosystem Index ETF (TOKN-T). The fund seeks to provide diversified exposure to companies driving blockchain innovation and building the next generation of financial infrastructure.
PIMCO Canada Corp. listed the PIMCO Managed Balanced Portfolio (PBAL-T) to provide investors with exposure to a diversified portfolio of global equity and fixed income securities.
J.P. Morgan Asset Management Canada grew its Canadian ETF suite with the JPMorgan International Developed Equity Active ETF (JIDE-T) to offer investor demand for diversification solutions. This actively managed fund provides access to high-quality companies located in foreign developed markets.
Amy Mak is ETF Specialist at Inovestor.
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