Best And Worst Q2 2018: Consumer Cyclicals ETFs And Mutual Funds
Figure 1 ranks from best to worst the eight Consumer Cyclicals ETFs that meet our liquidity standards, and Figure 2 shows the five best and worst-rated Consumer Cyclicals mutual funds. Not all Consumer Cyclicals sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 25 to 370). This variation creates drastically different investment implications and, therefore, ratings.
] We think advisors and investors focused on prudent investment decisions should include analysis of fund holdings in their research process for ETFs and mutual funds. 100 million for inadequate liquidity. 100 million and do not meet our liquidity minimums. 100 million for inadequate liquidity. 100 million and do not meet our liquidity minimums.
State Street SPDR S&P Retail ETF (XRT) is the top-rated Consumer Cyclicals ETF and Fidelity Select Multimedia Portfolio (FBMPX) is the top-rated Consumer Cyclicals mutual fund. XRT earns a Very Attractive rating and FBMPX earns an Attractive rating. Shares U.S. Consumer Services ETF (IYC) is the worst rated Consumer Cyclicals ETF and Rydex Retailing Fund (RYRTX) is the worst rated Consumer Cyclicals mutual fund.
ICY earns a Neutral rating and RYRTX earns a Very Unattractive rating. Buying a fund without analyzing its holdings is like buying a stock without analyzing its business and finances. Put another way, research on fund holdings is necessary due diligence because a fund’s performance is only as good as its holdings’ performance. Don’t just take our word for it, see what Barron’s says on this matter.
Technology may be the only solution to the dual mandate for research: cut costs and fulfill the fiduciary duty of care. Investors, clients, advisors and analysts deserve the latest in technology to get the diligence required to make prudent investment decisions. Figures 3 and 4 show the rating landscape of all Consumer Cyclicals ETFs and mutual funds.
Won the Webby Award for Top Financial Services Website in the world. Launched a Portfolio Review Service that allows users to submit their investment portfolio to be reviewed by Wealthsimple’s team of registered Portfolio Managers. Launched Wealthsimple for Advisors: An automated platform for financial advisors to manage their clients’ investment portfolios. Integration with Mint Platform: First financial institution to offer secure, read-only Mint access to their clients. Robo advisors continue to pick up traction in the general Canadian public.
The amount of questions and feedback that we receive on this one article comes close to that of the rest of the site put together! Against many analysts’ expectations, the number of robo advisors in Canada has also continued to grow. RBC recently announced that they will be launching their newest robo advisor RBC InvestEase in the near future and smaller, more niche shops have been opening up coast-to-coast.
I’m not sure if we’ll see a round of mergers and buyouts as these companies grow and get the feel of the industry over the next couple of years, but it should be interesting to watch develop. Also, more robo advisors are boosting the types of accounts that they are offering without any upward trends in fees - which is obviously great to see!
With Wealthsimple launching a competitive high interest savings account (HISA) option to their offerings, as well as RBC and BMO pushing their robo advisor-esque options, the line between online bank and robo advisor is quickly blurring. As Canadians look to handle more of their business in an online world, robo advisors are likely to keep getting more and more attention. Business Insider recently projected that robo advisors will handle 10% of all global assets under management by 2020 (quite a high figure when you consider they control less than 1% right now).
