up Next: COP26 (TWTW Oct 25-29, 2021)

Whether as a nod to COP26, kicking off in Glasgow Oct 31, and going on until November 12, or not … Clean Energy led the performance tables last week:

Interestingly, on the sector side of the equation, it is Energy that dominated, as we enter a demand period which is already stressing out the Europeans in no small measure …

 

Meantime, on a preliminary basis, here is what the performance landscape looked like as far as Vanguard Canada’s ETFs, both as far as last month’s top and bottom 10 performing ETFs, respectively YTD (top & bottom 10):

Evidently last month was a lot kinder to equity investors than September …

For bond investors … well, let’s just say that you’ve seen the inflation numbers and they aren’t pretty, transitory (which increasingly looks to apply to select “inflation” vs other inflation becoming more entrenched …) or not. What then? 2021 probably one of the worst year on record thus far performance wise … BUT then again, one can only remind oneself that the pandemic did certain things to rates which … once unwound … don’t look as favorable for fixed income investors…

Now – back to the reference to COP26 above:

Mindpath Educational Conferences delivered its second fully virtual annual ETF conference last week (Oct 25, 26, and 27th). For those of you keeping track, it was Mindpath’s 8th annual ETF conference.

We covered off a whole range of topic, including ESG. All of last week’s content will shortly be available for postview (VOD), and we look forward to getting your feedback on the conference.

In terms of ESG, I would mention that, as you likely would have expected, it was a topic covered during the conference, as well as one which was mentioned repeatedly during the conference.

Specific to understanding ESG, I would point you to Mark Webster’s presentation on Bonus day, for a thorough background session that will get you as an Advisor, well prepared for any discussion on what your clients might want to discuss with you in relation to it. As well, we had Clare (thank you Clare 🙂 ) O’Hara, business reporter at Report on Business (Globe and Mail) moderate an excellent discussion on the topic with Jennifer Nerlich (Solactive); Reid Baker (Fundata); Kathleen Anderson (ClearBridge / Franklin Templeton); as well as Deborah Debas (Responsible Investing Specialist, Desjardins)

you will definitely want to review these sessions, and likely many others, highly relevant as we head into 2022.

Getting back to October’s “action”, in terms of inflows, and performance, we estimate that net inflows into Vanguard’s ETFs last month added some $742 MM of AUM to the firm’s assets, to which market performance added a further $1,193MM. While Aggregate AUM overall stand at close to 2/3 higher (+64.8%) where they stood 12 months ago (a mere 9 or so days prior to the vaccine news …), the pace of net sales last month was the lowest since last October/November. Of note, aggregate sales of asset allocation product comprise some 27% of aggregate net sales over the past year.

In terms of destination $, US equities and equities overall, continued last month to claim the bulk of net sales. For the moment, prospects of tapering notwithstanding, market participants evidently continue to take the view that stocks are the place to be … TINA … for now, continues to rule…