We at the Canadian ETF Association (CETFA) believe ETFs can contribute effectively to your clients’ portfolios in a jarring investing climate.
ETFs offer distinct advantages for tackling tougher markets
ETFs are not insulated from the issues facing today’s economy. But they can present client- and advisor-friendly solutions. And, depending on a client’s needs, goals and time horizon, there could be an upside: the stock market is “on sale.” With other investors, the silver lining of accepting a capital loss on their investment may come from gifting it to a cherished cause for the tax credit.
While ETFs and other market-based investments, such as mutual funds and individual equities, inevitably respond to market change, their differences are striking. ETFs provide the risk-mitigating diversification that individual stocks and bonds cannot and (typically) at a lower cost and with greater tax efficiency than mutual funds.
ETF fund managers, including active managers, don’t need to sell significant holdings to satisfy rising redemption orders as mutual fund managers may be forced to do, triggering capital gains. ETFs may therefore be better accepted than mutual funds by increasingly fee-sensitive and value-conscious investors for whom the client-focused reforms (CFRs) have made investing costs more transparent. (Detailed client dialogues about products and associated risks obligated by the CFRs may also alleviate hindsight regrets about product selection.)
Understanding today’s realities benefits from an on-the-ground perspective
To gain more perspective on the complexities of volatility, we also sought out insights from several member companies to help you manage your client relationships through the hurdles you could encounter.
“We’re in an unprecedented, never-experienced-before economic cycle driven by the pandemic followed by a stimulative axe from government to revive the economy,” said Lisa Langley, founder and CEO of Toronto-based EMERGE Canada Inc. “Now there are supply chain issues, other hiccups and a war in Europe that has accentuated fuel costs. So there’s a trifecta of conditions causing volatility. We’ve never been here before.”
Bill DeRoche, chief investment officer with AGF Investments LLC, also underscored the extraordinary circumstances: “We’re in a different regime now. Previously, there was an expansionary period, but from the first week of November 2021, inflation has been the primary concern for most central banks; it’s the first experience with inflation for most investors. For many people, this is a new conversation.”
Observed Randall Alberts, senior vice-president and head of distribution with CI Global Asset Management: “It’s important to remember that bear markets are relatively short compared to bull markets.” The S&P 500 fell 2% or more for 41 trading days in 2008; however, the economic expansion between 2008 and 2020 lasted for 133 weeks and the S&P 500 grew by 528.9%. “Never before did we have such low interest rates for so long, or the pandemic, or the digital information processing that has potentially heightened the impact of volatility.”
ETFs’ innate strengths mean they can perform well in all market conditions
Five to 10 years ago, the ETFs available to Canadian investors were rather “vanilla,” but now they’re much more sophisticated, DeRoche said. “It’s important to educate clients that ETFs respond to different environments, that they’re so differentiated they can support many investment strategies and can perform well in all conditions. Investors can get the ‘flavour’ they need for their specific portfolios.”
ETFs allow for easy access, diversification, liquidity and transparency into the underlying holdings, Alberts said. “These attributes let investors better position their portfolios according to their risk tolerance and time horizon. Intraday pricing means ETFs have much more liquidity and can respond more rapidly to changing situations. These are advantages in volatile times.”
Commented Langley: “If you’re truly an investor, you’re investing over different time periods. Volatility lends itself well to dollar cost averaging with ETFs and to choosing a strategic mix of ETFs that suit different time horizons.” And you can buy certain ETFs at historic lows with the potential for future long-term growth: “Dollar-cost averaging is being used to gain units at a lower price.”
Product types that could be a good fit in today’s environment include liquid-alt ETFs, which can deliver diversification and downside protection and minimize drawdown. Advisors may also want to consider smart-beta ETFs, covered-call ETFs and divided-focused funds to cushion the impact of volatility.
All equities-based ETFs are exposed to market forces. However, correlations can differ, so portfolio-level volatility can be mitigated by choosing the right mix. For example, an ETF that deploys a hedging strategy can reduce the impact of drawdowns and deliver the potential for positive returns with lower portfolio volatility.
Alternatively, a broadly diversified factor-driven ETF that focuses on infrastructure investments may feature less volatility and the potential for higher yields. Investors with a long-term outlook may still want to consider innovation-focused ETFs. These funds (and their underlying stocks) are taking the brunt of the market drop right now, but against slower near-term growth projections, such ETFs can be the right strategy for countering inflation.
A number of CETFA-affiliated firms offer ETFs designed to manage risk, and there even more products that could satisfy the needs of your risk-averse clients.
CETFA members, including those we interviewed, also produce a variety of educational resources to help you and your clients navigate investment management options and make more clear-headed decisions. The strategies and tactics they deploy include readily accessible dedicated service teams, webinars shared via YouTube, sponsored articles in the business press, as well as supportive content shared via email, extranets, websites and social media.
Advisors can put volatility to work for clients
What did these members foresee about a change in current patterns, and what other considerations should advisors heed as they guide clients through the turbulence?
“We’re in a high-inflation environment; it is pernicious and we have to deal with that. But the good news is that the Fed will fight it…I don’t see a recession anytime soon,” DeRoche said. For now, advisors can address drawdown risk through the right ETFs but should cautiously avoid promissory exchange-traded notes because some closed very quickly as a result of volatility, he added.
“Volatility is not a bad thing and it’s here to stay,” Langley said. “It always goes back to why investors are investing, what their objectives are and to taking advantage of volatility. They’re trying to cool down the economy, and I believe a soft landing is possible. It’s just going to take awhile to get back to where we were.”
Uncertainty is the single biggest driver of volatility, Alberts said, and the circumstances create an opportunity for advisors to differentiate themselves: “Lean in and be present and accept the stresses of challenging times. Go back to your shelf and look at the ETFs that may be best suited to difficult markets.”
FXM VENTURE – Offers News Investment Platform – GlobeNewswire
Glasgow, Scotland, Aug. 13, 2022 (GLOBE NEWSWIRE) — With the intention of being one of the top investment platforms for investors of all stripes, FXM Venture was established in July of 2020. FXM has been extending its impact to adjacent nations thanks to the vision and leadership of its core members.
BACKGROUND OF FXM VENTURE
Ten significant individuals were involved in the founding and early development of FXM Venture, with the goal of establishing this investment fund’s brand on a global scale. And today, 100 members work in 6 transnational branches and continue their tradition. In addition to being directed and run by professionals with decades of expertise in a variety of sectors, including finance, investing, marketing, and technology, FMX is also run by vital departments like: customer service personnel, technical staff,…
Additionally, in just two years (starting in July 2020), FMX has called for a total investment of 8 million USD.
HOW DOES FXM VENTURE WORK?
For both long- and short-term traders, funding rates are regular payments. Investors are free to select a transaction based on their financial situation and liquidity. Users can, in particular, withdraw money at any moment and get interest.
At FXM Venture, we have experienced traders in both Forex and Cryptocurrencies allowing us to build a stable financial foundation to increase the returns of our investors.
FXM also has AI technology in trading approaches to Real-time forecasts of hundreds of scenarios, execution strategies, and commercial alliances, in addition to our research, market neutral algorithms by monitoring market movements and building trading algorithms. Our primary goal is to establish a win-win relationship between the customer and the firm, in which FXM Venture develops specific investment plans and strategies, while investors can then choose suitable investment packages, together with FXM consider and select specific investment plans.
ORIENTATIONS AND VISIONS
By expanding its operations and financial system in 2022, FXM aims to become one of the best legitimate funds in the world. To that end, 4 additional branches will be opened, and recruiting efforts will be stepped up to reach our target of 200 members.
In terms of financing, FXM VENTURE’s aim is to raise our fund up to $15 million.. Aside from that, FXM equips you with the resources you need to be completely confident in your investment decisions. Furthermore, you may invest with FXM with complete confidence because here are what make FXM different:
- TRANSPARENT TRANSACTIONS
- MULTI-ASSET PLATFORM
- PROFESSIONAL TRADER TEAM
- AI TECHNOLOGY
- SECURED DEPOSITS AND WITHDRAWALS
- 24/7 CUSTOMER SUPPORT SERVICE
- LIVE TRADING
FXM does not intend to stop at satisfying almost 30,000 customers who have been using services and investing in FXM (with a customer satisfaction rate of 78% and a customer return rate of 85%), FXM is as complete as possible with the goal of increasing the number of clients to 50,000 in the next quarter with a satisfaction level of over 90%.
PACKAGES AND REFERRAL
Visit the website for more information
And also, Remember to refer friends to be rewarded with $25 for every friend who joins and registers at least one package — with no cap on the number of people you can refer, and gain matching income on their profits: F1 (10%), F2 (5%), F3 (3%), F4 (2%).
Company Name: FXM Venture
Telegram group: https://t.me/fxmventure_official_chat
Telegram channel: https://t.me/fxmventure_official_channel
There is no offer to sell, no solicitation of an offer to buy, nor a recommendation of any securities or any other products or services. Furthermore, nothing in this PR should be construed as a recommendation to buy, sell or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security or related transaction is suitable for you based on your investment objectives, financial situation and risk tolerance. Please consult your business advisor, attorney or tax advisor regarding your specific business, legal or tax situation.
PepsiCo Makes $550 Million Celsius Investment As Hip Hop Mogul Sues For His Shares – Forbes
has its sights on gaining a bigger share of the energy drink with a $550 million investment in Celsius Holdings. The energy drink maker is also at the center of a lawsuit between Russell Simmons and his ex-wife Kimora Lee Simmons along with her husband Tim Leissner, as he tries to retrieve his shares in Celsius back from them. Allegedly Kimora Lee and Leissner transferred and were using his shares of Celsius as collateral to pay a bond in connection with these criminal charges. Leissner already pleaded guilty, and agreed to forfeit $43.7 million for his role in the Malaysia 1MDB scandal that cost Goldman more than $3 billion. Simmons alleges that his shares of Celsius are being used as collateral to pay a bond in connection with these criminal charges.
The Breakdown You Need To Know:
Celsius recorded a first-quarter domestic revenue increase of 217% to $123.5 million and the long-term distribution deal gives Pepsi a minority stake of about 8.5%. The brand, which doesn’t use artificial preservatives or sugar, adds to PepsiCo’s energy drink portfolio, which already includes Rockstar as well as Mountain Dew drinks Amp, Game Fuel, and Kickstart. CultureBanx reported that with these types of returns it’s easy to see why Simmons wants his shares back from the couple.
Quick Recap on how these three people ended up in this situation. Goldman Sachs
last year agreed to pay the Malaysian government $3.1 billion, to settle claims in the 1Malaysia Development Berhad (1MDB) fund. One of the main people who got the bank involved in this scandal was Kimora Lee’s Simmons husband Tim Leissner.
The bank swiftly parted ways with him after his shady dealings with Jho Low came to light. In November 2018, when Leissner agreed to pay $43.7 million toward victim compensation, it was in order to avoid jail time.
In his claim, Simmons says Kimora and Leissner “knew full well that Leissner would need tens of millions of dollars to avoid jail time, stay out on bail, and forfeit monies for victim compensation.” Simmons claims they used their Celsius shares as collateral for Leissner’s bail, and he wants his shares returned.
Now Russell wants no financial part in keeping Leissner out of jail. In a letter sent to his ex-wife Kimora Lee on May 5, 2021, he was pleading with her to do the right thing and avoid a lawsuit. He wrote that “I am shocked and saddened to see how your side has behaved in response to my repeated attempts to get an agreement from you to rightfully and legally reaffirm my 50% of the Celsius shares..which have been locked up with the government after being used for your husband’s bail money.”
A representative for Kimora Lee said “Kimora and her children are shocked by the extortive harassment coming from her ex-husband, Russell Simmons, who has decided to sue her for shares and dividends of Celsius stock in which Kimora and Tim Leissner invested millions of dollars.” At this point Russell is asking a judge for damages against Kimora and Leissner and believes he should be awarded restitution for interest and equal value for the wrongfully obtained shares.
Saskatchewan Leads Provinces In Building Construction Investment | News and Media – Government of Saskatchewan
Released on August 12, 2022
Saskatchewan first among the provinces in year-over-year growth
Today, Statistics Canada released June 2022 Investment in Building Construction numbers, which showed Saskatchewan with a 63.0 per cent increase (seasonally adjusted) compared to June 2021, ranking first among the provinces in terms of percentage change.
Saskatchewan also had strong month-to-month growth for building construction investment with a 17.6 per cent increase (seasonally adjusted) between May 2022 and June 2022, second among the provinces. The value of building construction investment in June 2022 was $464 million, the highest monthly investment in the province since August 2013.
Investment in residential building construction also saw strong month-to-month growth with an increase of 24.0 per cent.
“Saskatchewan’s economy is moving full steam ahead as we advance our Government’s strategy to increase our exports and attract investment into the province,” Trade and Export Development Minister Jeremy Harrison said. “Saskatchewan is a global leader in the sustainable production of the food, fuel and fertilizer that the world needs, a reality that will lead to more jobs and opportunities in our province for years to come.”
The latest Statistics Canada Labour Force Survey showed there were 581,600 people employed in July 2022 – an increase of 24,400 jobs (+4.4 per cent) compared to July 2021, the third highest percentage increase among the provinces. The seasonally adjusted unemployment rate of 4.0 per cent remained the second lowest among the provinces, a decrease from 7.1 per cent in July 2021 and well below the national average of 4.9 per cent.
Saskatchewan has ranked highly in a number of other key economic indicators in recent months, including June 2022 merchandise exports, which had the second highest year-over-year growth among the provinces at 57.3 per cent and June 2022 building permits, which had the second highest month-to-month growth among the provinces at 15.8 per cent and the third highest year-over-year growth at 27.4 per cent. June 2022 urban housing starts had the second highest year-over-year growth at 87.0 per cent, compared to the national increase of 0.2 per cent (unadjusted).
For more information, contact:
Trade and Export Development
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