Earnings season began in April for many companies reporting their first quarter of the year. Attention turned to the earnings reports of some of the Magnificent Seven companies as they set the tone for the market. Several beat Wall Street estimates, helping the S&P 500 reach another new high.
Both the Bank of Canada and the Federal Reserve left policy rates unchanged based on increased uncertainty caused by the conflict in the Middle East.
The top performers for the month of April were occupied for commodity-focused funds. The MegaLong (3X) US Semiconductors Daily Leveraged Alternative ETF (SOXU-T) earned a 158.40% price return for a single month. The SavvyLong (2X) GOOGL ETF (ALPU-T) had a 72.76% percentage increase. In third place, based on price alone, was the SavvyLong (2X) AMZN ETF (AMZU-T) with a return of 70.16%.
Meanwhile, the Canadian ETF marketplace welcomed 32 new funds in the month of April.
RBC ETFs
RBC Global Asset Management Inc. listed seven new funds on the Toronto Stock Exchange. The three actively managed equity funds included RBC Canadian Equity ETF (RCAN-T) and RBC U.S. Large-Cap Equity ETF (RUSA-T, RUSA-U-T), which provide exposure to the Canadian and U.S. markets, respectively. The other four funds are part of an expansion effort in its Target Maturity bond series. These fixed income solutions include:
RBC Target 2032 Canadian Government Bond ETF (RGQU-T)
RBC Target 2032 Canadian Corporate Bond ETF (RURU-T, RURU-U-T)
RBC U.S. Large-Cap Equity ETF (RUSA-T)
Each fund will mature in 2032 and aims to help investors manage portfolio duration.
Ninepoint ETFs
Ninepoint Partners LP added nine new single-stock funds to the market, eight of which are additions to its HighShares ETF suite. These funds are intended to provide investors with exposure to Canadian and U.S. companies and employs a covered call strategy and modest leverage to generate high monthly income. The lineup includes the following:
Ninepoint Constellation Software HighShares ETF (CSHI-T)
Ninepoint Celestica HighShares ETF (CLHI-T)
Ninepoint Kinross Gold HighShares ETF (KGHI-T)
Ninepoint Intel HighShares ETF (INHI-T)
Ninepoint Alphabet HighShares ETF (GOHI-T)
Ninepoint Palantir HighShares ETF (PLHI-T)
Ninepoint Tesla HighShares ETF (TSHI-T)
Ninepoint NVIDIA HighShares ETF (NVHI-T)
Moreover, Ninepoint launched the first CoreShares ETF with the Ninepoint Constellation Software CoreShares ETF (CSUC-T). Similarly, the fund also uses covered call strategy to produce high cash flow distribution but will not use leverage.
Manulife ETFs
Manulife Investments launched three actively managed asset allocation funds that cater to investors looking for risk-based portfolios. The Manulife Conservative ETF Portfolio (MCAP-T), Manulife Balanced ETF Portfolio (MBAP-T), and Manulife Growth ETF Portfolio (MGAP-T) will all apply an indexing or rules-based approach tailored to the different risk tolerances of the portfolio.
Global X ETFs
Global X Management Company LLC listed three thematic ETFs on the TSX. The Global X U.S. Infrastructure Development Index ETF (PAVE-T, PAVE-U-T) will invest in companies involved in infrastructure activity in the United States.
The Global X Space Tech Index ETF (ORBX-T) is designed to offer exposure to companies contributing to the growing space economy. This includes companies involved in the development of rocket launch systems and reusable rockets; the production of mission-critical space technology and components, including engines, orbital transport systems, software, and data solutions; the delivery of satellite-enabled telecommunications and data services.
CIBC ETFs
CIBC Asset Management added six bond funds to its offering available on the Cboe Canada. The CIBC 1-5 Year Laddered Investment Grade Bond Fund (CLBF-NE) offers a fixed-income strategy that involves bond laddering with different maturity dates to provide income while minimizing exposure to interest rate fluctuations. The five new CIBC Investment Grade Bond Funds include:
CIBC 2031 Investment Grade Bond Fund (CTBG-NE)
CIBC 2028 U.S. Investment Grade Bond Fund (CTUF-NE)
CIBC 2029 U.S. Investment Grade Bond Fund (CTUG-NE)
CIBC 2030 U.S. Investment Grade Bond Fund (CTUH-NE)
CIBC 2031 U.S. Investment Grade Bond Fund (CTUI-NE)
These funds are part of the expansion in its lineup of target maturity fund, each maturing in their respective calendar year.
IA Clarington ETFs
IA Clarington Investments launched the ETF versions of two existing mutual funds. The IA Clarington Thematic Innovation Class (ITIN-T) invests in U.S. all-cap companies benefiting from secular change and industry disruption driven by technological innovation. The IA Clarington Global Multifactor Equity Fund (IMFE-T) employs a systematic multifactor investment approach to create a portfolio for global diversification.
Other launches
CI Global Asset Management launched the U.S. dollar version of the CI Morningstar International Value Index ETF (VXM-U-T). The fund invests in equity securities of the largest and most liquid issuers from countries classified by Morningstar as developed markets, excluding the U.S. and Canada.
First Trust Portfolios Canada listed the First Trust Nasdaq® Clean Edge® Smart Grid Infrastructure ETF (SGRD-T) on the TSX. The fund seeks to replicate the performance of an index of companies involved in the electrical grid infrastructure.
Amy Mak is ETF Specialist at Inovestor.
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