Market week: U.S. stock indexes surge
Prospect of stimulus package boosts sentiment
The big U.S. stock market gauges posted solid weekly gains with the S&P 500 Composite Index advancing 3.8% and the Nasdaq Composite Index gaining 4.6%. Sentiment was buoyed by the prospect of a stimulus deal being reached, as the Trump administration and Congress continued to haggle over the size of the package, somewhere north of US$1 trillion. The U.S. Dept. of Labor’s employment report showed that the economy created 661,000 jobs in September, with the unemployment rate ticking down to 7.9% from 8.4% in August.
In Canada, employment rose by 378,000, as the unemployment rate notched down to 9.0% in September from 10.2% in August. The S&P/TSX Composite Index continued to lag, ticking down with a hairline loss of 0.1% on the week, despite a strong showing from crude oil, gaining 9.5% on the week, and gold, gaining 1.7% on the week.
Fund news and updates
* Invesco launches S&P/TSX Composite ESG Index ETF. Invesco Canada Ltd. on Oct. 8 launched its Invesco S&P/TSX Composite ESG Index ETF (TSX: ESGC). The fund is the first Canadian-listed ETF to track the S&P/TSX Composite ESG Index, which uses S&P DJI’s Environmental, Social and Governance criteria to select companies from the benchmark Canadian S&P/TSX Composite Index. In a release, Invesco said the fund “offers Canadian investors access to notable Canadian companies that have a thoughtful ESG tilt while still offering a risk/return profile similar to the benchmark Index.”
* Franklin Templeton debuts active global ETF. Franklin Templeton Canada on Oct. 6 debuted its Franklin Global Growth Active ETF (TSX: FGGE), which aims to invest in quality companies globally whose prospects have yet to be recognized by the markets. The fund is co-managed by John Remmert, Patrick McKeegan, and Don Huber. The fund invests substantially all of its assets in the Franklin Global Growth Fund, which is a concentrated portfolio of 35 to 40 global growth stocks. The fund may invest anywhere in the world, and may allocate up to 20% of its assets in emerging markets.
© 2020 by Fund Library. All rights reserved. Reproduction in whole or in part by any means without prior written permission is prohibited.
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.