Market week: S&P/TSX gains ground

U.S. stock indexes edge back as inflation soars

U.S. stock indexes slipped on the week, while Canada’s benchmark S&P/TSX Composite Index advanced 1.5%. As U.S. headline inflation climbed to an annual 6.2% in October, and consumer sentiment dropped even further in November, U.S. investor sentiment cooled somewhat, with traders looking to the possibility of monetary policy tightening earlier in 2022 than had been expected. The University of Michigan’s index of consumer sentiment fell to 66.8 in November, from October’s final reading of 71.7, suggesting growing inflation concerns as inflation expectations rose. The S&P 500 Composite Index edged back 0.3% on the week, while the Nasdaq Composite Index retreated 0.7%.

Powered by rallies in healthcare, information and technology, and materials, the 1.5% week-over-week advance in the S&P/TSX Composite Index put the gauge up 24.9% for the year to date. Crude oil edged back 0.6% on the week, while gold climbed steadly through the week, spiking on Thursday following the release of U.S. consumer price data for October, and staging a 2.6% advance for the week.

Fund news

* Manulife debuts two defensive equity ETFs. Manulife Investment Management on Nov. 10 launched two new actively managed exchange-traded funds.

Manulife Smart Defensive Equity ETF (TSX: CDEF) aims for long-term capital appreciation through diversification in Canadian securities while seeking to reduce market sensitivity.

Manulife Smart U.S. Defensive Equity ETF (TSX: UDEF) also targets long-term capital appreciation through diversification in U.S. securities while seeking to reduce market sensitivity. Manulife Smart U.S Defensive Equity ETF is offered in both hedged and unhedged series.

* Purpose launches carbon-neutral classes of its crypto ETFs. Purpose Investments Inc. on Nov. 9 debuted carbon neutral classes for its cryptocurrency funds, Purpose Bitcoin ETF (TSX: BTCC) and Purpose Ether ETF (TSX: ETHH). Through a partnership with Patch Technologies Inc., a leading API-first platform for carbon removal, Purpose aims to give investors the opportunity to sustainably invest in Bitcoin and Ether. Carbon emissions linked to an investment will be offset to achieve net zero carbon output.

The carbon footprint of investments will be measured daily using Patch’s in-house measurement methodology for both Bitcoin and Ether. Carbon offsets will be purchased on a weekly basis to target net-zero carbon emissions at the beginning of each trading week and invested in both traditional and ground-breaking new climate projects around the world that are verified and vetted by Patch.

The new classes will not impact the existing classes of BTCC and ETHH listed in market.

* Mackenzie launches diversified mutual fund with crypto exposure. Mackenzie Investments on Nov. 4 introduced Mackenzie Maximum Diversification Global Multi-Asset Fund in partnership with sub-advisor TOBAM, a Paris-based asset manager using a proprietary mathematical approach that finds value in diversification.

The fund will have exposure to global equity and fixed income securities, each ranging between 40% and 60% allocation, through investing in other Mackenzie-TOBAM products. The fixed income allocation is focused on investment grade and high yield credit. The fund will initially gain exposure to cryptocurrency through an allocation to both Bitcoin and Ethereum ETFs, with a maximum allocation of 10%. This will be regularly rebalanced to maintain the risk profile of the portfolio.

Monitor the main stock and commodity indexes daily with the Fund Library’s interactive Markets Page.

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Disclaimer

The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.