iShares Canada as at Jun 30, 2021 (Top / Bottom 10 performers)

Keeping an eye on top and bottom performers in the iShares line-up (1 month TR; YTD TR), as well as relative performance of several Factors ETFs versus S&P/TSX 60 (XIU) for perspective, since Oct 31, 2020 (aka a few days prior to vaccine announcement that kicked off the sizable rally unleased by it)

Top / Bottom 10 performing ETFs to June 30, 2021:

(for the month of June 2021)

  • USD strength & perception of FED “Hawkishness” not playing out well for Gold & Silver exposure
  • Base Metals and Materials performance divergence versus Energy, notwithstanding Delta Variant headwind presumably negative for all 3 …
  • significant monthly USD/CAD gains help several US ETFs to top of monthly gainers
  • CDN Tech – Shopify … Shopify … Shopify

Top / Bottom 10 performing ETFs to June 30, 2021:

(Year-to-date)

  • Bond ETFs, while generally still down for the 1/2 year, making back some ground from lows earlier this spring, as markets a) accept the FED’s transitory characterization of spiking inflation, respectively b) possibly sees some buying for diversification purposes after significant losses sustained over Oct – Mar period.

 

Factors (to June 30, 2021, versus Oct 31, 2020):

  • Value and Dividend, as shown, have dominated since last October
  • Both took a backseat to both Growth (which has underperformed significantly over the period), respectively the S&P/TSX Large Cap 60 Index.
  • These “relative” performance numbers in Canada may NOT be truly representative of relative performance of factors, on account of the Canadian market’s attributes, whereas for instance, Financials contribute an inordinate % of exposure for both value AND dividend (relative to benchmark Index):

XIU: 34.94% Financials (as at July 26, 2021), versus XDV: 53.58%; and XCV: 65.45% (!)

Note that at the other end of that “financials” exposure spectrum, XCG – Canada Growth holds 8.79% of AUM in the sector. Implication? XDV and XCV on that basis can be seen as providing over concentration to financials, respectively diversification from XIU that is inferior to that of XCG

  • Min Vol – Financials exposure (31.63%) slightly below S&P/TSX Large Cap Index
  • Min Vol – Capturing greater % of S&P/TSX Large Cap Index returns in Q1 and Q2, 2021 than from Oct 31, 2020 to Dec 31, 2021. Investors looking to slightly “de-risk” their portfolio after the significant vaccine triggered up move may wish to potentially reconsider Min Vol (which sustained in the aggregate significantly outflows post last year’s bear market – likely as a result of investors being partly unimpressed with downside participation … which was likely greater than they might have expected …)