Yes, it was quite a week. On Tuesday I helped friends at BMO open the markets. No, I did not get to press the button. Well, you’ll see my mock stock market opening pose shot below. Not a great hair day, but what are you going to do? BMO introduced some new ESG ETFs. That was a great experience. This week, I wrote on Horizons’ equal weight TSX 60 ETF. I found out soon after that the fund is slated to close. Yes, impeccable timing.
Thanks to friends at BMO ETFs for inviting me to help open the markets on Tuesday.
The markets were opened. It was a down day. Apparently that is good luck. I am happy to literally and figuratively be a cheerleader for the ETF industry. Of course, the winners are investors. I cheer for you, mostly.
And OK, because my Mom is reading, here’s me ‘opening’ the Toronto Stock Exchange.
What was not lucky this week was writing on Horizon’s equal weight TSX 60 ETF. That fund is slated for closure in March. The press release went out last night. I really liked that methodology. It has a nice history of out-performance in the US by way of the equal weight S&P 500. Perhaps we would have seen the same in Canada. I think the approach just needed a real stock market correction to ‘do its thing’.
In need of a real correction?
Horizons’ CEO Steve Hawkins offered that …
The ETF is coming up on its 10 year anniversary and the methodology, although sound in theory, has never really been able to outperform the Market Cap Index as it should have during that period.Steve Hawkins, President and CEO, Horizons
I often will contact a provider when covering a fund or issue. But this was a simple story and approach. I wrote. I pressed play.
Horizons Active Canadian Dividend ETF – HAL.
I am also looking at Horizons’ HAL. That’s an actively managed dividend ETF. It was one of 5 Horizons ETFs to win a FundGrade A+ award. The fund has caught my eye for quite some time. I want to look under the hood to see how they are creating those wonderful returns. My readers will know that I study the Canadian dividend space ‘too much’. I will be chatting with the sub advisor.
Will an active fund be able to knock off my current favourite?
You’ll find many of our ETF friends on that awards list. And once again you’ll find one the Tangerine Portfolios picking up a trophy. I’ve been at that show to accept on behalf of that Balanced Income Portfolio. And remember, of course, we should not pick funds based on short term performance.
Vanguard opens the markets, delivers global bonds.
The Vanguard Canada group opened the markets on Thursday and they introduced VGAB, a more complete global bond fund.
That is an interesting addition to the Canadian ETF family. Of course I’ll be back soon with a feature post on the fund. All said, it’s a one ticket option to buy a world of bonds.
Encana’s disappearing act.
As you may know Canadian energy stalwart had had enough of Canada. They packed up and went to the US. They’ve been de-listed from Canadian indices, including that TSX 60 ETF. Taking its place is Brookfield Property Partners. This will be the first REIT in the fund. That is the third Brookfield offering in the TSX 60.
Encana will still trade on Canadian exchanges. But they’ve changed their name.
Not a good name by the way. Next time, call me.
Get your Robo news.
Wealthsimple was hogging the headlines over the last couple of weeks. Hey as Canada’s most famous robo advisor that’s what they often do.
Som Seif and Purpose Investment bought Wealthsimple’s advisory business.
And the savings account wars are heating up. We now have Wealthsimple Cash . That’s a prepaid Visa card with a current 2.4% interest rate. Nice, we’ll have to keep an eye on this. Keep in mind it is not a savings account. It is not CDIC insured.
I will be doing Robo performance comparison posts. Here’s a look at Justwealth returns updated for 2019.
And here’s my review of Justwealth the Robo that knows when to get personal.
AGF earnings surprise.
I have to say I was more than surprised that active managers would drive up the stock price of AGF. Some earnings surprise alright. As a supplier of high fee mutual funds they are losing assets. That is likely to accelerate. It’s all over except for the crying. But yes, maybe it’s going to take a while. That trend certainly ties into the record breaking year for Canadian ETFs post. OK, AGF only had $886 million or redemptions in 2019, but you wait. The best is yet to come.
More Weekend Reads.
Here is GenYMoney’s Blog Roundup – $100k TFSA edition. Well done. And thanks for the mention.
On MoneySense Jason Heath looks at the prospects for taking out an RRSP loan. Borrowing to invest is not always taboo.
Here’s a very good post on The Hub, the costs of quality of life in our later years. That’s dear to my heart as I spend a lot of time hanging out with the ‘old’ folks these days. Part blogger, part senior care.
Rob at Passive Canadian Income offers his personal and investment goals for 202o. He also has a very nice new site format and look.
Mark Seed at myownadvisor looks at some tax issues and the use of Turbo Tax Canada.
And here’s a wonderful post from A Wealth Of Common Sense and the asset allocation quilt redux.
And on all about the dividends, Matthew looks at a recent purchase and dividend increases.
Thanks for reading. Have a great weekend. Don’t forget to follow Cut The Crap Investing.