By Mike Keerma
The major North American stock market indices closed higher on the week, as
expectations of strong first-quarter earnings shifted investors’ focus from
growing geopolitical tensions, at least temporarily. President Trump,
meanwhile, scaled back his rhetoric about initiating military action in
Syria, calming investor anxiety over rising Mideast tensions with Russia.
Moreover, he floated the possibility of rejoining the Trans-Pacific
Partnership, even as he imposed fresh tariffs on Chinese technology
investments in the U.S. The U.S. blue-chip
S&P 500 Composite Index advanced 2% on the week, while the
Nasdaq Composite Index rallied 2.8% after it became apparent that social media giant
Facebook Inc. (NASDAQ: FB) wouldn’t crash and burn after CEO Mark Zuckerberg’s testimony before
Congress this past week. Toronto’s benchmark
S&P/TSX Composite Index rose 0.4% on the week, powered by gains in the energy and materials groups,
crude oil advanced 8.7% on the week.
* Invesco files prelim for new S&P 500 ETF.
announced it had filed a preliminary prospectus for its new Invesco S&P 500 Equal Weight Index ETF under the
proposed trading symbol EQL. The ETF will track the S&P 500 Equal
Weight Index of U.S. stocks, with both hedged and unhedged units.
In addition, Invesco also announced that it had finalized the acquisition
of Guggenheim Investments’ ETF business, bringing Invesco’s global ETF
assets under management to more than US$215.3 billion, and overall assets
to US$984.2 billion (as at Feb. 28).
* Horizons terminates two ETFs.
Horizons ETFs Management (Canada) Inc. announced it is terminating the
BetaPro S&P 500 VIX Short-Term Futures 2X Daily Bull ETF (TSX:
HVU) and the
BetaPro S&P 500 VIX Short-Term Futures Daily Inverse
ETF (TSX: HVI) effective at the close of business on June 11.
In a release, Horizons said that the pricing in S&P 500 VIX futures has
been very irrational and erratic since February and has “significantly
changed the risk profile of these two ETFs to be far too high for Canadian
investors.” It added that “ETFs that provide exposure that are expected to
generate returns that are greater than, or inverse to, one-times the daily
price return of volatility futures specifically no longer offer an
acceptable risk/reward trade-off for Canadian investors.”
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