Capital markets navigated a complex macroeconomic backdrop in July as uncertainty continues to hover around the Middle East conflict. From the oil supply shock to the retreat from AI-related stocks, the S&P 500 closed the month largely flat.
Global central banks balanced steady economic expansion against lingering inflationary pressures. The Bank of Canada and the U.S. Federal Reserve, among other major developed economies, maintained their policy rates unchanged.
LongPoint funds took the top three spots for best performing Canadian ETFs in the month of July. The MegaShort (-3X) US Semiconductors Daily Leveraged Alternative ETF (SOXD-T) lead the field with a 64.86% price return. The SavvyShort (-2X) TSLA ETF (TSLD-T) followed with a 59.95% increase on price alone. Securing the third best performing spot was the SavvyLong (2X) MSFT ETF (MSFU-T) with a 48.61% market price return.
Outside of leveraged funds, the next standouts include Harvest Microsoft Enhanced High Income Shares ETF (MSHE-U-T) (28.95%), Harvest Suncor Enhanced High Income Shares ETF (SUHE-T) (25.85%), and Evolve Ether ETF (ETHR-U-T) (22.86%).
Meanwhile, July saw 17 new fund listings across 10 issuers in the Canadian marketplace.
Harvest ETFs
Harvest expanded its covered call and income lineup with two new additions. The Harvest Premium Yield Gold ETF (HPYG-T) provides investors with access to the price of gold bullion and leading gold-related equities which generating high monthly income. The Harvest International High Income Shares ETF (HHII-T) targets leading international developed market equities while providing enhanced yield through an active covered call strategy.
Madison ETFs
Madison Investments (Canada) Ltd. entered the Canadian market with two core equity offerings. The Madison US Large Cap ETF (MLRG-T) and the Madison US Mid Cap ETF (MMID-T) deliver actively managed exposure to high-quality U.S. companies across large and mid-capitalization spectrums. Both funds give investors access to the firm’s bottom-up investment research approach.
Evolve ETFs
Evolve Funds Group launched two target-yield sector strategies. The Evolve Canadian Financials Yield Fund (CFIN-T) provides exposure to an equal-weighted portfolio of Canadian banks and insurance companies, while the Evolve Canadian Utilities Yield Fund (CUTE-T) targets high-yielding utility and infrastructure companies. Both funds employ a covered call writing program to boost income.
Brompton ETFs
Brompton Funds launched two systematic high-income products. The Brompton U.S. Equity HighPay ETF (PAYU-T) offers broad exposure to U.S. equities, while the Brompton Utilities & Infrastructure HighPay ETF (PAYI-T) targets essential infrastructure and utility companies, both employing covered call strategies to enhance distribution yield.
Capital Group ETFs
Capital International Asset Management (Canada), Inc. listed three active ETF solutions to the Toronto Stock Exchange. The Capital Group U.S. Equity Select ETF (CAPU-T) seeks to provide long-term growth of capital and income, with a focus on future income over high current yield. The Capital Group Global Developed Equity Select ETF (Canada) (CAPQ-T) pursues prudent growth of capital by investing in companies that are predominantly based in developed markets, with a view to conservation of principal. Lastly, the Capital Group International Developed Equity Select ETF (Canada) (CAPN-T) invests primarily in equity securities of issuers in developed markets outside North America.
BMO ETFs
BMO Asset Management Inc. introduced an opportunistic fixed-income fund, launching the BMO Credit Stress Opportunities ETF in Canadian dollar (ZCDX-T) and U.S. dollar (ZCDX-U-T) units to capitalize on mispriced or stressed corporate credit securities. The funds primarily use credit default swap index derivatives referencing a diversified CDX North American high yield credit index to minimize the effects of interest rate fluctuations.
Other launches
National Bank Investments Inc. expanded its SmartData series with the NBI SmartData Canadian Equity Fund (NSDC-T), employing quantitative data-driven models for Canadian equity selection.
Guardian Capital LP added to its technology offerings with the Guardian i3 AI Technology and Innovation Fund (GIAI-T), which leverages artificial intelligence models to select global companies pioneering technological innovation.
iA Clarington Investments added the IA Clarington International Multifactor Equity Fund ETF (IIME-NE), targeting international developed equities through a multi-factor quantitative approach.
Lastly, the Lysander Funds Ltd. listed the Lysander-Canso Credit Income ActivETF (PBY-T) for investors seeking consistent income and capital preservation through an actively managed portfolio focused on corporate debt and fixed-income credit opportunities.
Amy Mak is ETF Specialist at Inovestor.
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