Summer doldrums, markets up!

Having looked at the top and bottom performers last month and YTD for BMO ETFs => Click HERE!

let us now look at:

Vanguard Canada ETFs – top and bottom 10 performers for the month of August:

Vanguard Canada ETFs – top and bottom 10 performers YTD (as at Aug 31, 2021):

Noteworthy:

  • Strong month for Global Momentum, with strength in US equities resting on potent combination of strong earnings reports and a still ueber dovish FED (which latest payroll data presumably leaves sidelined just a tad longer – until next month’s NFP? If strong?)
  • Global Value still >10% higher on the year – to – date than Global Momentum, BUT lagging for past 1 and 3 months … so I’d say until 4th wave conquered, which presumably would solidly play into value and reopening, switch to Value Factor leadership in terms of relative performance was short lived (even if rather potent … but no matter what, after what … over a decade of underperformance, presumably a relative rebound could be pronounced … You know, the old if you hold a beachball under water and then release … )
  • Global Min Vol – lagging … will contrast this with the various region / country specific Min Vol ETFs from iShares, where I suspect, not all markets aren’t created equal …
  • No Vanguard ETFs showing negative returns on a trailing 6 months basis (aka Feb – Aug 2021 period) – save for VEE – Emerging Markets. Will VEE performance begin improving in coming weeks and months? As we all know, Chinese equities have sustained significant losses this year, stemming from Government crackdown on technology firms in particular. Is this now behind us? US-listed KWEB is up close to 25% from recent August lows (Aug 19, 2021).

In terms of Assets under Management, Vanguard ETFs saw AUM rise by CAD 1.8 Billion in August, consisting of an estimated CAD 843MM of net new issuance of units, respectively CAD950 MM of market gains.

For August, Asset allocation ETFs (VCNS; VRIF; VBAL; VEQT; and VGRO are estimated to have brought in 28% of new inflows, or CAD 236 MM, with the trailing 12 months inflows into the category close to CAD 3 Billion.

Equities otherwise captured the majority of inflows, led by S&P500 and US Total Market ETFs, followed by FTSE Canada All cap exposure, and FTSE Developed all Cap Ex North America.

Relative to a year ago, Asset Allocation ETFs are estimated to have seen AUM grow by 109.7%, followed by equity ETFs enjoying AUM growth of 63.7% in the 12 months period. (Fixed income grew 15.5% y/o/y). On an overall basis, Aug 31, 2021 AUM of CAD 44.4 Billion has grown 57.9% from the corresponding month-end in 2020.

Asset Weighted MER as at August 31, 2021:

(e) 16 bps

Next up – a look at iShares Canada ETFs in August 2021 …