WHAT ARE WE LOOKING FOR?
Leaders and laggards among ETFs coming out the gate.
Many stock markets have slipped into the red since the start of 2010 after last year's recovery from the worst bear market since the 1930s. The debt crisis in Greece has caused anxiety among some investors.
We asked Victor Tan, fund analyst at Globe Investor, to screen for the best- and worst-performing Canadian-listed exchange-traded funds this year until Thursday.
We included the iShares, Claymore, BMO and Horizons AlphaPro actively managed ETFs. We excluded the Horizons BetaPro bull and bear and inverse (short) ETFs.
WHAT DID WE FIND?
Leadership is coming from technology, income trust and various bond ETFs.
The iShares CDN Tech ETF, which owns five stocks, gained 7 per cent. Open Text Corp. and Research In Motion, which each represent more than 20 per cent of the fund, "performed strongly over the last month," said Oliver McMahon, director of product management at iShares Canada.
The iShares CDN Income Trust ETF, which climbed 4 per cent, outperformed in first few weeks of 2010 as the broader market fell back on fears of a longer recovery from a global recession, he added.
Among laggards, resource and emerging markets ETFs have had a rough ride.
Claymore Natural Gas Commodity ETF continued its slide from 2009 as gas prices, which have fallen since the summer of 2008, remain in a slump. The ETF shed nearly 15 per cent after a 61-per-cent decline last year.
The iShares CDN Gold Sector ETF is off 7 per cent as the price of the metal has fallen off from a record high over $1,200 (U.S.) per ounce in December. Barrick, Goldcorp and Newmont make up around 46 per cent of the fund.
Claymore BRIC ETF, which is 96-per-cent invested in Brazil, China and India, lost nearly 7 per cent. Brazil, which represents 56 per cent of the ETF, was a drag on the fund because its market lost ground, while currency conversion also had an impact, said Vlad Tasevski, analyst at Claymore Investments Inc.
HAP (Horizon AlphaPro) Managed S&P/TSX 60 ETF, which is run like a stock-picking mutual fund as opposed to tracking an index, lost 3 per cent.
For the year ended Jan. 31, that actively managed ETF gained 6.6 per cent versus 24 per cent for S&P/TSX 60 index.
Stocks for this ETF were chosen over the past year by technical analyst Ron Meisels, who also writes for The Globe. Early last month, Frank Mersch and Prakash Hariharan of Front Street Investment Management Inc. took over the stock-picking job.
|How ETFs are faring so far this year||Assets|
|Top 15 ETFs*||At Jan./10||Latest||YTD||Calendar year returns|
|Name||Symbol||Category||($ mlns)||MER||Feb. 25||2009||2008||2007||2006||2005|
|iShares CDN Tech Sector Index||XIT||Sci/Tech Eq||64.2||0.55||7.05%||52.4%||-49.1%||10.7%||32.7%||-13.5%|
|iShares CDN Income Trust||XTR||Cdn Inc Trust||223.0||0.55||4.02%||40.4%||-25.9%||6.0%||-3.2%|
|Claymore US non-hedged||CLU||U.S. Eq||86.4||0.70||2.62%|
|iShares CDN L-T Bond||XLB||Cdn L-T Fix Inc||67.0||0.35||2.54%||5.3%||2.2%||2.9%|
|iShares CDN Corp. Bond Index||XCB||Cdn Fix Income||1245.7||0.40||2.37%||15.1%||-0.6%||1.2%|
|iShares CDN REIT Index||XRE||Real Est. Equity||951.7||0.55||2.04%||53.2%||-38.3%||-6.0%||26.8%||24.3%|
|iShares CDN Compl. Index||XMD||Cdn Equity||158.3||0.55||1.85%||46.4%||-38.8%||5.3%||17.8%||21.3%|
|Claymore Adv. CDN Bond ETF||CAB||Cdn Fix Inc||38.5||1.84%|
|iShares CDN Bond Index||XBB||Cdn Fix Inc||1393.3||0.30||1.83%||5.0%||6.1%||3.3%||3.8%||6.1%|
|iShares CDN Govt Bond Index||XGB||Cdn Fix Inc||148.1||0.35||1.63%||1.2%||8.7%||4.1%|
|BMO Short Corp. Bond Index||ZCS||Cdn S-T Fix Inc||15.2||1.52%|
|BMO Cdn Govt Bond ETF||ZGB||Cdn Fix Inc||3.0||1.49%|
|Claymore 1-5 Yr Corp. Bond||CBO||Cdn Fixed Inc||570.1||1.35%|
|iShares CDN Sht Bond Index||XSB||Cdn S-T Fix Inc.||1651.9||0.25||1.23%||4.3%||8.0%||3.7%||3.8%||3.0%|
|BMO Short Prov. Bond Index||ZPS||Cdn S-T Fix Inc.||13.6||1.21%|
|Bottom 15 ETFs*|
|Claymore Nat Gas Commod||GAS||Misc.||254.4||0.92||-14.69%||-61.3%|
|Claymore Intl Index ETF||CIE||Intl Equity||101.5||0.62||-7.23%||15.6%||-30.8%|
|Claymore BRIC ETF||CBQ||Em Mkt Equity||312.7||0.66||-6.76%||75.0%||-57.6%||70.9%|
|Claymore Broad Emer. Mkt||CWO||Em Mkt Equity||52.5||0.46||-6.08%|
|iShares CDN MSCI Emer. Mkt||XEM||Em Mkt Equity||101.4||0.10||-5.51%|
|BMO Emerging Mkt Eq||ZEM||Em Mkt Equity||10.1||-5.19%|
|Claymore Oil Sands ETF||CLO||Nat. Res. Equity||37.6||0.63||-4.76%||59.0%||-54.2%||22.7%|
|iShares CDN Energy Index||XEG||Nat. Res. Equity||831.5||0.55||-4.67%||40.3%||-35.9%||10.6%||4.0%||60.6%|
|BMO S&P/TSX Gbl Base Mtls||ZMT||Nat. Res. Equity||10.1||-4.59%|
|iShares CDN Gold Sector||XGD||Prec. Metals Eq||1030.3||0.55||-3.62%||7.0%||1.0%||-4.5%||40.8%||21.7%|
|Claymore S&P/TSX Gbl Mng||CMW||Prec. Metals Eq||56.3||0.59||-3.49%||54.3%||-38.8%|
|Claymore Gbl Mthly Adv. Div.||CYH||Cdn Sm/Mid Cap||67.1||0.64||-3.47%||47.1%|
|BMO Intl Equity Index ETF||ZDM||Intl Equity||10.2||-3.42%|
|Claymore S&P Global Water||CWW||Misc.||38.3||0.64||-3.19%||11.0%||-24.2%|
|HAP S&P/TSX 60 ETF||HAX||Alt. Strategies||-3.01%|
|DEX Universe Bond Ttl Ret||5.4%||6.4%||3.7%||4.1%||6.5%|
|MSCI World ($ Cdn)||11.8%||-26.1%||-7.1%||20.6%||6.6%|
|S&P/TSX Total Return||-0.6%||35.1%||-33.0%||9.8%||17.3%||24.1%|
|Note: * as of Feb. 25, 2010|
|Source: Globe Investor, company|
© 2007 The Globe and Mail. All rights reserved.
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