Amid earnings season, OpenAI made several headlines throughout October. In addition to signing a multi-year agreement with Broadcom to collaborate on custom chips and networking equipment, the company also made a move to form a partnership with Microsoft as it looks to transition into a for-profit business.
The deal helped propel Microsoft’s valuation to cross the US$4 trillion market cap. Apple’s valuation also touched on that mark following strong sales of its latest iPhone product line.
Another major event in October was gold soaring to a new milestone as it hit a record-breaking US$4,300 an ounce for the first time ever.
Rare earth stocks were on the rise due to tensions between Beijing and Washington over China’s exports on critical minerals sparking bets on alternative suppliers.
Meanwhile, the Canadian ETF marketplace saw 31 new fund launches during the month. Here’s an overview:
Global X ETFs
Global X Investments Canada listed eight funds on the TSX. The Global X China Hang Seng TECH Index ETF (CHQQ-T) offers exposure to the Hang Seng TECH Index, which represents the 30 largest technology companies listed in Hong Kong.
The Global X Silver Covered Call ETF (AGCC-T) is designed to track the price of silver bullion with an added covered call strategy to generate a monthly income for the investor.
For fixed income investors, the Global X 1-3 Year US Treasury Bond Index ETF (TSTX-T, TSTX-F-T, TSTX-U-T) and Global X 20+ Year US Treasury Bond Index ETF (TLTX-T, TLTX-F-T, TLTX-U-T) provides access to short- and long-duration U.S. Treasuries for safety and liquidity.
Brompton ETFs
Brompton Funds unveiled two collateralized loan obligations (CLOs) funds to offer investors a solution that offers high credit quality, attractive yields, and diversification benefits.
The Brompton Wellington Square Investment Grade CLO ETF (BBBB-T, BBBB-U-T) is designed to provide high monthly income and capital preservation through investment in an actively managed portfolio of primarily investment grade-rated CLOs.
Fidelity ETFs
Fidelity Investments Canada added two additional investment solutions for different investor needs as well as three ETF versions of existing mutual funds. The Fidelity Multi-Alt Equity Fund (FMAE-T) offers a diverse mix of equity-focused alternative strategies.
Fidelity Global Small-Mid Cap Equity Fund (FGSM-T) concentrates on mid, small, and micro-cap companies that are often underrepresented in traditional portfolios.
The company decided to create ETF versions for the following:
Fidelity Global Income Portfolio (FMPI-T) – comprised of a 40/60 equity/fixed income mix
Fidelity Global Balanced Portfolio Fidelity Global Growth Portfolio (FMPB-T) – comprised of a 60/40 equity/fixed income mix
Fidelity Global Growth Portfolio (FMPG-T) – comprised of a 85/15 equity/fixed income mix
LongPoint ETFs
LongPoint Asset Management Inc. added nine new double leveraged single stock ETFs to its offering. These ETFs provide two times (2X) leveraged long exposure to nine most actively traded Canadian publicly traded stocks, which includes Barrick Gold (ABXU-T), Cameco (CCOU-T), Canadian Natural Resources (CNQU-T), Constellation Software (CSUU-T), National Bank of Canada (NBCU-T), Canadian Imperial Bank of Canada (COMU-T), Royal Bank of Canada (RBCU-T), and TD Bank (TDU-T). Funds based on Shopify include one with two times (2X) daily exposure (SHPU-T) and one with two times the inverse (-2X) daily exposure (SHPD-T).
Other launches
Harvest Portfolios Group added the US dollar traded version of the Harvest Diversified High Income Shares ETF (HHIS-U-T). The fund focuses on providing high monthly income and growth potential from a portfolio of Harvest single stock ETFs on trending companies that use a covered call strategy.
Evolve Funds Group Inc. also listed a USD version of the Evolve NASDAQ Technology Enhanced Yield Index Fund (QQQY-U-T). The fund tracks the Nasdaq-100 Index® and offers to enhance yield through a covered call option writing program based on market volatility.
Ninepoint Partners LP listed the Ninepoint Mining Evolution Fund (NMNG-T). The fund invests primarily in global equity and equity-related securities of companies that are involved directly or indirectly in the metals and mining sector.
BMO Asset Management Inc. launched the BMO Broad Commodity ETF (ZCOM-NE) for investors looking for access to global commodity markets. The fund’s objective is to replicate the performance of a broad-based commodity index and will primarily use commodity-linked derivative instruments.
Capstone Asset Management launched an innovative series of funds that are managed with a faith-based framework. The Capstone Biblically Informed Canadian Equity Fund (BIVC-T) and the Capstone Biblically Informed U.S. Equity Fund (BIVU-T) in companies that carry on business that are, in the fund manager’s view, consistent with biblical values.
Amy Mak is ETF Specialist at Inovestor.
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