Market week: Stock indexes retreat in season of volatility

Nasdaq reverses trend, posts weekly gain

Except for the Nasdaq Composite Index, which gained 1% on the week, the major North American stock indexes posted weekly losses for the fourth consecutive week. The traditional season of market volatility is true to form again this year, as investors fret over the deadlock over economic stimulus in Washington, the growing number of Covid-19 cases in both Canada and the U.S., the contentious U.S. presidential election now just over a month away, and the uncertain future of Canada’s minority federal government as it prepares to table a high-spending budget in the near future. The CBOE Volatility Index (VIX), stood at 30 at week’s end, higher than the typical 20 reading in more normal market conditions.

The S&P 500 Composite Index slipped 0.6% on the week, while Canada’s S&P/TSX Composite Index edged down 0.1%, as the price of crude oil fell 2.3%, while gold dropped 4.7% on the week.

Fund news and updates

* Desjardins launches mutual funds on NAVex platform. Desjardins Investments Inc. announced on Sept. 22 the posting of 16 mutual funds on NAVex, a mutual fund platform that streamlines the distribution of investment funds.

As a result Desjardins becomes the manager with the largest number of mutual funds on this platform, including seven RI funds that are 100% free of oil production and pipelines.

TSX NAVex is a mutual fund platform targeting investment advisors that execute their financial order instructions through an IIROC registered dealer. TSX NAVex provides the same end-of-day Net Asset Value (NAV) execution that advisors have come to expect from mutual funds, but also realizes the benefits of bulk trading and a lower transaction cost model. The platform leverages the operational efficiencies of TMX equity order and settlement infrastructure, providing seamless service to TSX-connected dealers.

* Mackenzie launches nine new ETFs. Mackenzie Investments on Sept. 24 debuted nine new exchange traded funds (ETFs). The new funds will span three areas: premium beta; asset allocation; and alternatives. The ETFs will begin trading between Sept. 24 and Sept. 30:

Mackenzie U.S. Aggregate Bond Index ETF (CAD-Hedged) (TSX: QUB)
Mackenzie Developed ex-North America Aggregate Bond Index ETF (CAD-Hedged) (TSX: QDXB)
Mackenzie Developed Markets Real Estate Index ETF (TSX: QRET)
Mackenzie Global Fixed Income Allocation ETF (TSX: MGAB)
Mackenzie Balanced Allocation ETF (TSX: MBAL)
Mackenzie Conservative Allocation ETF (TSX: MCON)
Mackenzie Growth Allocation ETF (TSX: MGRW)
Mackenzie Global Infrastructure Index ETF (TSX: QINF)

* RBC iShares launches two new target maturity date bond ETFs. RBC iShares expanded its exchange traded fund lineup with two new RBC Target Maturity Corporate Bond ETFs managed by RBC Global Asset Management Inc.

RBC Target Maturity Corporate Bond ETFs represent a family of fixed income ETFs maturing in successive years from 2020 to 2027. Each ETF tracks a unique FTSE Maturity Corporate Bond Index that maintains a portfolio of Canadian investment-grade corporate bonds structured to mature in the same calendar year as the RBC Target Maturity Corporate Bond ETF. When the ETF reaches the maturity date, its final net asset value is returned to the current unitholders.

RBC Target 2026 Corporate Bond Index ETF (TSX: RQO) tracks the FTSE Canada 2026 Maturity Corporate Bond Index.

RBC Target 2027 Corporate Bond Index ETF (TSX: RQP) tracks the FTSE Canada 2027 Maturity Corporate Bond Index.

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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.