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Tag: ETFs

  • Making sense of the markets this week: February 25, 2024 – MoneySense

    Making sense of the markets this week: February 25, 2024 – MoneySense

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    Retail earnings highlights

    All numbers below are in U.S. dollars.

    • Walmart (WMT/NYSE): Earnings per share of $1.80 (versus $1.65 predicted). Revenue of $173.39 billion (versus $170.71 billion predicted).

    • Home Depot (HD/NYSE): Earnings per share of $2.82 (versus $2.77 predicted). Revenue of $34.79 billion (versus $34.64 billion predicted).

    Walmart continued to show why it deserves its best-in-class status for mass retailers. Quarterly revenue was up 6% and e-commerce sales were up a massive 23%. No doubt shareholders were excited about the 9% dividend raise the company announced.

    The big news from “the big blue retailer,” a.k.a. Walmart, was that it’s buying TV manufacturer Vizio for $2.3 billion. The move makes sense given how many Vizio TVs Walmart sells. The company pointed out that the acquisition would be a major boost for its advertising business, as it could now better track customer data. Look forward to massive Black Friday Vizio sales for years to come.

    “Our market is on its way back to normal demand conditions. We’re not quite there yet, but the pressures we saw in 2023 are receding.”

    —Richard McPhail, Walmart CFO

    Home Depot announced that its sales were down about 3% from 2022’s fourth quarter, but that was significantly less of a pullback than it had been expecting, given the current high interest rate environment.

    Canadian earnings: who needs profits anyway?

    Sometimes you have to wonder if the analysts who predict quarterly earnings know what they’re talking about. Take Nutrien, Suncor and Loblaw, which all reported their earnings. Loblaw’s quarter was predictably boring, and the stock moved up slightly, score one for the analysts. However, Nutrien came in way below earnings expectations, yet the stock went up 7%. Suncor on the other hand had a great earnings report, but shares were down slightly on the day.

    Canadian earnings highlights

    Here are the numbers released this week. Note: Nutrien is a Canadian company based in Saskatoon, but trades on the New York Stock Exchange and reports in U.S. dollars.

    • Suncor Energy Inc. (SU/TSX): Earnings per share of $1.26 (versus $1.07 predicted). Revenue of $14.14 billion (versus $12.69 billion predicted).
    • Nutrien (NTR/TSX, NYSE): Earnings per share of USD$0.37 (versus $0.65 predicted). Revenue of USD$5.40 billion (versus $5.20 billion predicted).
    • Loblaw (L/TSX): Earnings per share of $2.00 (versus $1.90 predicted). Revenue of $14.53 billion (versus $14.53 billion predicted).

    Analysts usually point to anticipated forward guidance being the key in instances like this. So, because the future doesn’t look great for oil prices (recessions, supply increases, etc.) and Nutrien believes potash demand will increase going forward, the stock market is looking ahead and not simply reacting to last quarter’s news.

    Nutrien shareholders definitely miss the days of sanctions crippling the supply of Russian potash to the market, despite the bump on Thursday. The fourth quarter price was USD$235 per tonne, compared to USD$526 per tonne a year earlier.

    In more positive news, Nutrien’s CEO Ken Seitz said, “We do see potential for firming of potash prices,” and went on to add that Red Sea logistics issues were likely to continue to add to cost pressures for the foreseeable future.

    Suncor announced that it had set a new oilsands production record at 757,400 barrels per day, however, profit margins were down on lower oil prices. The oil giant also announced it would be bringing in a familiar corporate face as its next board chair, as Russ Girling (former CEO of TC Energy Corp) would be taking over fromMichael Wilson.

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    Kyle Prevost

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  • Making sense of the markets this week: February 18, 2024 – MoneySense

    Making sense of the markets this week: February 18, 2024 – MoneySense

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    Shopify struggles

    Canada’s second-largest company (or third, depending on the day) had a relatively strong earnings day on Tuesday, but the company’s share price took a beating based mostly on decreased earnings expectations going forward.

    Shopify earnings highlights

    Shopify is listed on both the Toronto and New York Stock exchanges, and it announces earnings in U.S. dollars.

    • Shopify (SHOP/TSX): Earnings per share of $0.34 (versus $0.31 predicted), and revenues of $2.14 (versus $2.08 predicted).

    Shares of Canada’s tech darling were down over 13% on Tuesday, but even with the massive pullback, the share price is still up 14% year to date (YTD).

    Shopify’s CFO Jeff Hoffmeister reported the good news that more products were sold on the Shopify platform than ever before. The fourth quarter included the all-important holiday shopping activity, and Hoffmeister announced that Shopify has moved $75.1 billion-worth of merchandise. That was a 23% increase on last year’s numbers. Net earnings came in at $657 million, compared to a loss of $623 million during the fourth quarter in 2022.

    President Harley Finkelstein said Shopify handled the orders for 61 million customers worldwide on the Black Friday weekend. 

    “Our platform handled a staggering 967,000 requests per second, which is the same as 58 million requests per minute, nearly 80% higher than our peak traffic just two years ago.”

    —Harley Finkelstein

    So, where’s the struggle? Growth is not the same as profitability. With Shopify stating its free cash flow is going to be substantially lower than previously indicated, investors were quick to pounce on the bad news.

    Finkelstein tried his best to put a positive spin on future growth opportunities.

     “There are opportunities for us to go beyond Europe. Of course, we’ve talked about Latin America and the Asia-Pacific in the past, but we definitely see a lot of opportunity there[…] I mean, we’ve captured less than 1% of market share in global retail sales, even as our product and geographies have expanded.”

    There’s no question Shopify’s been an incredibly innovative company, and it is all the more noteworthy for keeping its home base in Canada, despite many tech companies moving shop. It’s very likely the company will be consistently profitable, but trying to forecast the “when” and the “how much” of that long-term profitability is a very difficult endeavour. In this age of higher-for-longer interest rates, investors appear to be demanding durable profits sooner rather than later, and consequently, shareholders will have to buckle up for a bit of a volatile rollercoaster.

    Can Shopify keep up the growth momentum while controlling costs? Investors are betting on it. But Tuesday’s dip would indicate that it’s not at all certain about those bets.

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    Kyle Prevost

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  • How do dividends work for Canadian ETFs? – MoneySense

    How do dividends work for Canadian ETFs? – MoneySense

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    What are ETF dividends?

    Dividends are a portion of profits that a company shares with its shareholders, typically paid quarterly. Canadian stock markets include many companies that pay a high dividend. The dividend yield is the annual dividend per share divided by the price per share.

    Selecting and managing your own dividend stocks can be time-consuming, however. Here’s where Canadian dividend exchange-traded funds (ETFs) enter the scene. They offer investors a diversified stock portfolio, which could include dividend-paying companies, that’s easy to manage. For example, the Fidelity Canadian High Dividend ETF (FCCD) holds 65 dividend-paying stocks, as at Jan. 15, 2024.

    There are several varieties of dividend ETFs, including ETFs comprising U.S. or international stocks—for example, Fidelity’s U.S. High Dividend ETF or International High Dividend ETF.

    How do dividends work in Canada?

    Not all companies pay dividends—it isn’t mandatory to do so. However, paying a healthy dividend can make a company’s stock attractive to income-seeking investors. A company’s board of directors decides the amount to be paid to shareholders based on factors such as profitability, cash flow and the company’s future investment plans. Many companies aim to pay a consistent dividend, which often grows over time.

    To be eligible to receive the dividend, an investor must own shares on what’s referred to as the “ex-dividend date”—the first date that the stock trades without the right to receive the dividend. The actual list of those who will receive dividends is prepared on the “record date,” which is typically the business day after the ex-dividend date.

    Dividends are paid on a per-share basis, so the amount of money shareholders receive depends on the number of shares they own. For example, if a company announces a dividend of 10 cents per share, and you own 100 shares, then you would receive $10 of dividends.

    In the case of ETFs, since the fund owns the underlying shares, it receives all the dividends it is eligible for. After receiving the dividends and subtracting expenses, the ETF could either distribute the net dividends to unit holders or reinvest them. To help maximize the effect of compounding, you could choose the dividend reinvestment plan (DRIP), where the dividend distributions you receive from a fund are used to purchase additional units of the same fund at the current market price. For example, FCCD distributes dividends monthly, and investors can opt into a DRIP to automatically purchase more units.

    When do dividend hikes, cuts and pauses happen?

    Consistent and increasing dividends are often viewed as a sign of a company’s financial health. Investors often read into changes—or lack thereof—in a company’s dividend policy.

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    Aditya Nain

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  • Ethereum ETF: Franklin Templeton Enters The Fray As ETH Rallies

    Ethereum ETF: Franklin Templeton Enters The Fray As ETH Rallies

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    Wall Street titan and Asset manager Franklin Templeton has applied for an Ethereum Spot Exchange-Traded Funds (ETF) after a struggle to gain approval for their Bitcoin Spot ETF in early January.

    Asset Manager Files For Spot Ethereum ETF

    Asset managers have gravitated toward the Ethereum spot ETF since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton is the latest manager to apply with the SEC to get approval for this financial product. 

    The asset manager’s move came after successfully introducing the BTC spot ETFs. This is a notable step toward making more crypto investment products accessible to institutional and individual investors.

    James Seyffart, a senior analyst from Bloomberg Intelligence, also shared the update with the crypto community on X (formerly Twitter). Seyffart’s X post included a screenshot of the asset manager’s filing and data regarding other applicants.

    According to the post, Franklin Templeton is the eighth company in the cryptocurrency market to file for product approval. Previous asset managers to file applications for Ethereum ETFs include Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy. 

    Per the official filing, a Delaware statutory trust is how the Franklin Ethereum Trust is set up. The ETF aims to give investors access to ETH in a regulated manner by allowing them to store it directly through a custodian.

    It states in the company’s S-1 filing that the proposed “Franklin Ethereum Trust” will hold ETH and “may, from time to time, stake a portion of the fund’s assets through one of the more trusted staking providers.”

    Staking is the act of locking up digital currency to maintain the operations of a blockchain network. They plan to stake some of the ETF’s ETH holdings to supplement its income through staking rewards.

    The Price Of ETH Rallies Amidst The Update

    Franklin Templeton’s spot Ethereum ETF application was made in light of the price of ETH experiencing an uptick. However, no solid proof exists that the latest development impacted the price of crypto assets.

    Related Reading: Ethereum ETFs Approval Date Set For May 23, Forecasts Suggest ETH Could Reach $4,000

    Ethereum was trading at $2,661 as of press time, indicating an increase of over 7% in the past 24 hours. Data from CoinMarketCap shows that its market capitalization is also on the upside, marking an increase of over 7%. 

    Meanwhile, its trading volume has increased significantly by over 172% in the past day. Due to the rise, ETH now ranks third in the entire crypto market by trading volume.

    ETH trading at $2,679 on the 1D chart | Source: ETHUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Godspower Owie

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  • Video: How to choose ETFs, for Canadian investors – MoneySense

    Video: How to choose ETFs, for Canadian investors – MoneySense

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    There are more than 1,300 exchange-traded funds (ETFs) available for Canadian investors. How do you know which you should choose? Watch this video and use our ETF Screener Tool. Check out this video where Journalist Michael McCullough talks about choosing ETFs on The Wealthy Life with Sybil Verch.


    MoneySense’s ETF Screener Tool
    USE TOOL

    Watch more MoneySense videos:

    The post Video: How to choose ETFs, for Canadian investors appeared first on MoneySense.

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    MoneySense Editors

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  • Making sense of the markets this week: February 11, 2024 – MoneySense

    Making sense of the markets this week: February 11, 2024 – MoneySense

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    Disney is back on track

    Even with all the iconic brands under its corporate umbrella, Disney has struggled the last few years, as its share price is down 11% since February 2019.

    Things might be looking up now that CEO-extraordinaire Bob Iger is back in the captain’s seat after “retiring” back in 2020.

    Disney earnings highlights

    All earnings and revenues for Disney, PayPal, McDonalds, and Eli Lilly below are in U.S. dollars.

    • Disney (DIS/NYSE): Earnings per share of $1.22 (versus $0.99 predicted), and revenues of $23.55 billion (versus $23.64 billion predicted). 

    Disney shares were up over 7% in extended trading on Wednesday after the earnings call. And the call highlighted the following reasons for increased profit guidance in 2024:

    • Disney will meet or surpass its goal of cutting costs by $7.5 billion this year.
    • The House of Mouse company will also invest $1.5 billion into a partnership with game software developer Epic Games.
    • Disney’s “experiences” division (think theme parks and cruises) saw a 7% increase in revenues versus last year. 

    Yet, the biggest Disney revelation this week came from its sports streaming division.

    With Amazon trying live football broadcasts this year, it appears the more traditional names in media have decided to fight back. 

    Disney (through its ESPN subsidiary), Fox and Warner Bros. Discovery announced joining forces to create a new sports streaming service. The planned platform has yet to be named, but it would feature current sports programming from ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, TNT, TBS, TruTV, FS1, FS2, BTN, UFC, as well as the main ABC and Fox broadcasts. 

    Iger stated, “The launch of this new streaming sports service is a significant moment for Disney and ESPN, a major win for sports fans and an important step forward for the media business.”

    When you think about the possibilities of bundling a new live sports service with current Disney+, Hulu, and Max (the HBO streamer), you will have re-created a substantial amount of the old American cable bundle, plus streaming of classic movies and TV shows. Now, all we need to know is the price, and if and when it would be made available to Canadians.

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    Kyle Prevost

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  • Making sense of the markets this week: February 4, 2024 – MoneySense

    Making sense of the markets this week: February 4, 2024 – MoneySense

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    Facebook thrives—the rest of tech, not so much

    While all four of the tech titans that announced quarterly earnings this week managed to beat their predicted earnings and revenue targets, only Facebook announced earnings that really got investors excited.

    Big tech earnings highlights

    All numbers below are in U.S. currency.

    • Microsoft (MSFT/NASDAQ): Earnings per share of $2.93 (versus expected of $2.78) and revenues of $62.02 billion (versus $61.12 billion predicted).
    • Alphabet (GOOGL/NASDAQ): Earnings per share of $1.64 (versus expected of $1.59) and revenues of $86.31 billion (versus $85.33 billion predicted).
    • Meta (META/NASDAQ): Earnings per share of $5.33 (versus $4.96 predicted) and revenues of $40.1 billion (versus $39.18 billion predicted). 
    • Apple (AAPL/NASDAQ): Earnings per share of $2.18 (versus $2.10 predicted) and revenue of $119.58 billion (versus $117.91 billion predicted).
    Source: CNBC

    With Meta, often referred to as Facebook, announcing excellent ad revenue growth, decreased expenses, and even introducing its first-ever dividend ($0.50 a share, paid in March), it was no surprise to see share prices pop in after-hours trading on Thursday. That said, the 14% surge (on top of a 12% year-to-date gain) caps off an incredible run for Facebook that has seen the share price quadruple since November 2022. This good news comes despite the virtual reality unit at Facebook losing $4.65 billion this quarter (which is about what the entire company of Air Canada is worth as a comparison).

    When Microsoft and Alphabet released earnings on Tuesday, it was puzzling to see the solid earnings results lead to substantial drops in share prices for both companies. This price movement was likely due to sky-high expectations that led to outsized price run-ups in 2023 and the first month of 2024. 

    Considering that bigger picture is important, as Microsoft is still up over 7% year to date, and Google (despite an 8% loss on Wednesday) is up nearly 2% so far in 2024.

    Both Google and Microsoft announced that their cloud computing services were large growth vectors, and that layoffs were in the works in the name of cost-cutting and efficiency.

    Apple had similar earnings results to Google and Microsoft, as they beat their earnings projections but share prices were down 4% in after hours trading on Thursday, as several red flags were apparent in their quarterly earnings numbers. Most notably, a 13% sales decrease in China, and decreased revenue guidance for iPhones going forward. The stock is basically flat year-to-date.

    CP and Brookfield keep a steady hand on the profit tiller

    On our side of the border this week, the notable earnings calls included Brookfield Infrastructure and CP Rail.

    Canadian earnings highlights

    All figures in Canadian dollars, unless otherwise stated.

    • Brookfield Infrastructure Corp (BIP/TSX): Earnings per share came in at a loss of USD$0.20 (versus positive USD$0.11 predicted) and revenues were USD$4.97 billion (versus USD$2.03 billion predicted).
    • Canadian Pacific Kansas City Ltd. (CP/TSX): Earnings per share came in at $1.18 (versus $1.12 predicted) and revenues were $3.78 billion (versus $3.68 billion predicted).

    Before you get too worried about those wonky results from Brookfield, keep in mind that their reported numbers are often quite complicated to make sense out of due to their unique corporate structure and accounting practices. Given that the massive infrastructure conglomerate is often buying and selling large utilities, its quarterly numbers can look misleading. In this instance, the market took the news in stride, as BIP was up over 1% on the day.

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    Kyle Prevost

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  • Making sense of the markets this week: January 28, 2024 – MoneySense

    Making sense of the markets this week: January 28, 2024 – MoneySense

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    As their shareholders expected, Johnson & Johnson and Procter & Gamble had solid, if unspectacular, earnings reporting days. These companies aren’t strangers to predictable growth, as J&J and P&G have raised their dividend payout for 61 and 67 consecutive years, respectively.

    GE shares were more or less flat, despite the earnings beat, as shareholders await the results of the company breakup. The plan is to break away both GE’s aerospace and energy divisions into their own companies.

    CNR keeps profits on the right track

    Canadian National Railway (CNR/TSX) announced earnings per share of $2.02 (versus $1.98 predicted) and revenue of $4.47 billion (versus $4.38 predicted) on Tuesday. Share prices were up slightly on this news. Shareholders appear to largely agree with management’s prediction that increased Canadian economic activity in the second half of the year will lead to a profit boost.

    Gross ton miles (GTM) came in at 118,687 million versus 118,272.3 million estimated by analysts. 

    Management painted a very positive picture when it came to future projections. CNR chief executive officer Tracy Robinson stated, “Through 2023, our team of dedicated railroaders leveraged our scheduled operating model to deliver exceptional service for our customers and remained resilient in the face of numerous external challenges. Looking forward, we are optimistic as CN-specific growth initiatives are producing volumes. While economic uncertainty persists, we have the momentum to deliver sustainable profitable growth in 2024.”

    The current guidance for management states that 2024 will see a 10% increase in earnings per share, with record revenues from potash, refund petroleum and propane. International volume is back to pre-pandemic levels, fully recovering from the British Columbia dockworkers’ strike last summer. For more details on CNR, please check my article on Canadian railway stocks at MillionDollarJourney.ca.

    Bank of Canada HODLs—ahem, hangs on for dear life

    As most economy experts predicted, the Bank of Canada (BoC) decided to hold the policy interest rate steady at 5% this week. It was the fourth consecutive time the BoC has decided not to increase or decrease the rate. There appears to be a growing consensus that the Bank will be forced to cut rates in April or March, but BoC governor Tiff Macklem did hedge everyone’s bets by stating that the BoC isn’t taking future rate increases off the table, in case inflation pressures persist. He added that it would be “premature” to discuss interest rate cuts.

    Takeaways from the BoC announcement include:

    • Where rates may go: Macklem stated that BoC discussions around the interest rate are now shifting from “how high will it go?” to “how long will they stay at the current level before being reduced?”
    • Housing prices are high: An admission that “Shelter costs remain the biggest contributor to above-target inflation” means the BoC is semi-responsible for a solid chunk of the relatively high CPI numbers that we’re seeing.
    • No recession… maybe: “We don’t think we need a deep recession to get inflation back to target. But we do need this period of weak growth,” Macklem also stated.
    • Inflation’s moving target: Given that December’s CPI increase was 3.4%, it wasn’t a surprise to hear the BoC governor say, “Inflation is still too high, and underlying inflationary pressures persist. We need to give these higher rates time to do their work.”
    • Unemployment rates: Job vacancies are trending upward and are now close to pre-pandemic levels.
    • GDP growth expectations: The BoC expects zero GDP growth in the first quarter, and only 0.8% for the year.

    While Canadian borrowers are likely to grimace at the idea of inflation rates “doing their work,” the recent core inflation figures have backed the BoC into a bit of a corner. If a rate-cutting cycle started, only for inflation to once again trend upward, it could have devastating effects on people’s confidence that the BoC will eventually get inflation back in line. Once that confidence goes… it’s very difficult and economically painful to get it back. Options markets now believe there is about a 50% chance of a rate cut in April, with a very low probability of a cut in March, and a high probability of at least one cut by June.

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    Kyle Prevost

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  • Are GICs worth it for Canadian retirees? – MoneySense

    Are GICs worth it for Canadian retirees? – MoneySense

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    In other words, during the near-zero interest rates that prevailed until recently, investors wanting real inflation-adjusted returns had almost no choice but to embrace stocks. (Read more about TINA and other investing acronyms).  

    GICs have a place in locking in some real-returns, especially if inflation tracks down further. But Raina says investing in bonds offer opportunities to lock in healthy coupon returns, with the prospect of higher capital appreciation opportunities if interest rates fall further, since bonds currently trade at a discount. The risk is the unknown: when interest rates will start falling. Based on what the Bank of Canada (BoC) announced in the fall, Raina feels that could be some time in 2024. (On Dec. 6, the BoC announced it was holding its target for the overnight rate at 5%, with the bank rate at 5.25% and deposit rate at 5%.)

    CFA Anita Bruinsma, of Clarity Personal Finance, is more enthusiastic about GICs for retirees in Canada. “I love GICs right now,” she says. “It’s a great time to use GICs.” For clients who need a portion of their money within the next three years, she says, “GICs are the best place for that money as long as they know they won’t need the money before maturity.”

    Other advisors may argue bond funds could have good returns in the coming years, if rates decline. However, “I would never make a bet either way,” Bruinsma says, “I think retirees looking for a balanced portfolio should still use bond ETFs and not entirely replace the bond component with GICs. However, I do think that allocating a portion of the bond slice to GICs would be a good idea, especially for more nervous/conservative people.” For Bruinsma’s clients with a medium-term time horizon, she recommends laddering GICs so they can be reinvested every year at whatever rates then prevail. 

    GICs vs HISAs

    An alternative is the HISA ETFs. (HISA is the high-interest savings accounts Small referred to above). HISA ETFs are paying a slightly lower yield than GICs and also do not guarantee the yield. “I also like this product but GICs win for the ability to lock in the rate,” says Bruinsma.

    When investing in a GIC may not make sense

    Another consideration is that GICs are relatively illiquid if you lock in your money for three, four or five years or any other term. “If you are uncertain if you will need those funds in the near future, you can look at a high interest savings account ETF like Horizon’s CASH,” says Matthew Ardrey, wealth advisor with Toronto-based TriDelta Financial. “This ETF is currently yielding 5.40% gross—less a 0.11% MER.”

    Apart from inflation, taxation is another reason for not being too overweight in GICs, especially in taxable portfolios. Even though GIC yields are now roughly similar to “bond-equivalent” dividend stocks (typically found in Canadian bank stocks, utilities and telcos), the latter are taxed less than interest income in non-registered accounts because of the dividend tax credit. In Ontario, dividend income is taxed at 39.34% versus 53.53% for interest income at the top rate in Ontario, according to Ardrey. This is why, personally, I still prefer locating GICs in TFSAs and registered retirement plans (RRSPs). 

    When GICs are right for retirees

    Ardrey says GICs can be a valuable diversifier when it’s difficult to find strong returns in both the stock and bond markets. “This is especially true for income investors who would often have more of a focus on dividend stocks.” Using iShares ETFs as market proxies, Ardrey cites the return of XDV as -0.54% YTD and XBB is 1.52% year to date (YTD). “Beside those numbers a 5%-plus return looks very attractive.”

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    Jonathan Chevreau

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  • XRP Bears Looming: Analyst Predicts Potential Drop To $0.28

    XRP Bears Looming: Analyst Predicts Potential Drop To $0.28

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    Amid the bearish sentiment encompassing the crypto market, XRP has experienced a notable decline to the pivotal $0.51 price, which has led to several predictions from analysts concerning the price action of the token.

    Could The Price Of XRP Fall To $0.28?

    One of the well-known crypto analysts who has shared a daring prediction regarding the price action of XRP is JD. JD recently took to the social media platform X (formerly Twitter) to share his insights on the crypto asset with the crypto community.

    In his projections, the analyst looked at the potential for additional declines in an attempt to forecast where XRP will go next. According to JD, the digital asset might be forming a “hidden bullish divergence” on a weekly basis.

    On the weekly period, JD pointed out that XRP has been trapped in a symmetrical triangular pattern since 2021. His chart’s data indicates that the crypto asset is presently moving toward the direction of the triangle’s lower trendline.

    XRP demonstrating a possible wick down the orange box | Source: JD on X

    JD highlighted an orange box he drew in November of last year, which overlaps the bottom trendline. The analyst also noted that the orange box is situated between Fibonacci 0.618 and 0.786.

    The box, according to him, is a desirable level for dollar-cost averaging (DCA) move, and a decline into the box is conceivable. He stated that once XRP hits the box, he intends to open a “buy-the-dip” campaign, “heavily” filling his bags around $0.28 and $0.33.

    He also mentioned several other price levels for his personal DCA, such as $0.45, $0.51, and $0.59. This simply suggests that the analyst is confident about the asset in the long run.

    The post read:

    A wick down the orange box is very possible. (Orange box has been posted since November 2023). My personal DCA: 0.28 – 0.33 (HEAVILY!), 0.45, 0.51, 0.59.

    Nonetheless, he has urged the community not to time the bottom and highlighted a signal for investors to buy more XRP. “Don’t time bottom. When ‘Dumb Money’ complains, during the fear, that’s the signal to buy more,” he stated.

    Floor Price For The Digital Asset

    Even though the entire crypto market is currently experiencing a bearish trend, XRP is one of the most affected assets. The trend is mostly attributed to the waning enthusiasm around the Bitcoin Spot Exchange-Traded Funds (ETFs).

    The token has recently experienced severe losses, falling below the $0.55 support level. Due to the trend, analysts are now predicting significant drops in XRP’s valuation in the upcoming days.

    Another analyst who has predicted a decline in the price of the asset is XRP Shark. According to the analyst, the token could fall to a price level between $0.35 and $0.45.

    He believes that the aforementioned levels are the “bottom area” of the decline. However, XRP Shark has expressed optimism toward the token, while noting a “violent” recovery.

    As of the time of writing, XRP was sitting at $0.5129, demonstrating a decline of 10.27% in the past week. Despite the decline, its trading volume is presently up by over 15% in the past 24 hours.

    XRP
    XRP trading at $0.5154 on the 1D chart | Source: XRPUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Godspower Owie

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  • Attention, ESG investors: Canada’s biggest carbon-emitting public companies – MoneySense

    Attention, ESG investors: Canada’s biggest carbon-emitting public companies – MoneySense

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    That has implications for all of us. As the Bank of Canada puts it, “whatever path is chosen, delaying action heightens the risks to the financial sector and to the entire economy.” But thanks to a new report, Canadian investors now have greater insight into which companies are lagging.

    Climate Engagement Canada introduces Net Zero Benchmark assessments

    To help both individual and institutional investors in Canada make informed investment decisions, multiple industry initiatives are working to create and improve reporting on how companies approach climate and other ESG (environmental, social and governance) issues. Historically, both in Canada and globally, ESG reporting has been limited at best. But now, as demand for rigorous, usable data grows, fresh resources are emerging. One of these is the new Net Zero Benchmark Company Assessments from Climate Engagement Canada (CEC).

    The 41 participants in the CEC initiative include major organizations such as Canada Post, Hydro Québec and McGill University, as well as financial companies like BMO Global Asset Management, AGF Investments and Vancity. CEC’s focus is to engage with publicly traded Canadian corporations that have the highest direct and indirect GHG emissions—among them large grocery chains and transportation and energy companies—and its goal is to measure these organizations’ commitment to climate action and progress toward net-zero.

    “This is an attempt to understand what actions companies have taken so that investors can be more effective in pinpointing what companies they should target and on what specific climate issues,” says Tim Nash, founder of Good Investing, a Toronto firm that offers research and coaching to support DIY sustainable investors. “The more specific investors can be in saying to companies, ‘this is what we want,’ the easier it’s going to be for corporations to be able to meet those investor expectations.”

    Nash adds that it’s no surprise that “a lot of investors right now want to see strong climate change policies and leadership from Canadian corporations.” A 2023 survey by the Responsible Investment Association found that among a group of Canadian institutional asset managers and asset owners, 76% said that minimizing investment risk over time was among their top three reasons to choose responsible investing, and 93% said they consider a company’s greenhouse gas (GHG) emissions when making investment decisions.

    What’s in the Net Zero assessments?

    The Net Zero Assessments focus on the top reporting or estimated GHG emitters on the Toronto Stock Exchange (TSX). Nash describes the assessments as “robust and comprehensive”—there’s a lot of detail involved. The key documents released in December are an outline of what the benchmark’s 10 indicators mean and a colour-coded spreadsheet ranking each company on each indicator as either Yes (green), Partial (yellow) or No (red) for 2023. Spoiler alert: there’s not a lot of green. Most of the 41 companies on the list have at least partially set medium-term GHG reduction targets, while only 15 have set short-term targets—all of them partial. Other indicators include whether the company has a decarbonization strategy, a goal to reach net-zero by 2050 and a climate advocacy position in line with the goals of the Paris Agreement, among others.

    Which Canadian public companies have net zero ambitions and targets?

    Below is part of the Net Zero Assessments colour-coded spreadsheet, displaying the first four indicators (net-zero ambitions, long-term targets, medium-term targets and short-term targets), to give you a glimpse of how the 41 companies are faring. (View the full spreadsheet at Climate Engagement Canada.)

    Slide the columns right or left using your fingers or mouse to see even more data, including returns and strategy. You can download the data to your device in Excel, CSV and PDF formats. To reorder the data, tap the header’s arrow you want to compare.

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    Kat Tancock

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  • Building a “core and explore” portfolio with an all-in-one ETF – MoneySense

    Building a “core and explore” portfolio with an all-in-one ETF – MoneySense

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    For investors who embrace this hybrid strategy, new all-in-one exchange-traded funds (ETFs) can offer a one-ticket solution for their portfolio’s core. Many all-in-one ETFs are lower-cost investments that are bundled together so that investors don’t have to track or manage them. These products often include ETFs and pooled stocks and bonds, which are rebalanced, if the investment mandate permits.

    With an all-in-one ETF as their portfolio’s core, investors can then be a little bolder with their room to explore. Here’s what to consider before getting started.

    Take stock of your needs

    All-in-one ETFs can be appropriate if you have a medium- to long-term savings goal, such as home renovations, a sabbatical or retirement.

    First, consider how much you need to save, how much stable income you’ll have from other sources and when you’ll need your money. Think about your risk tolerance, as well. Are you a cautious type or more adventurous? What is your investment horizon? Is your financial position better suited for an investment with fewer ups and downs or one that’s more volatile but has the potential for higher long-term returns?

    For example, Fidelity All-in-One Balanced ETF (FBAL) is a low- to medium-risk option, with a mix of approximately 59% global equity, 39% global fixed income and 2% cryptocurrencies (as at Oct.31, 2023]. If you’re a less conservative investor with an eye for growth, Fidelity All-in-One Growth ETF (FGRO) has a higher equity weighting, with approximately 82% global equity, 15% global fixed income and 3% cryptocurrencies (as at Oct. 31, 2023) and has a medium level of risk. Both ETFs were launched in 2021.

    Two more funds, Fidelity All-in-One Conservative ETF (FCNS) and Fidelity All-in-One Equity ETF (FEQT), joined the program in 2022. The more conservative of the two, FCNS, offers a global multi-asset strategy with a neutral mix of approximately 40% global equity, 59% global fixed income and 1% cryptocurrencies (as at Oct. 31, 2023) and has a low-to-medium level of risk. FEQT has a neutral mix of approximately 97% global equity and 3% cryptocurrencies (as at Oct. 31, 2023) and has a medium level of risk.

    You can hold Fidelity’s All-in-One ETFs in a tax-free savings account (TFSA), registered retirement savings plan (RRSP), first home savings account (FHSA) or registered education savings plan (RESP).

    Decide how much of your portfolio will be the “core”

    Core holdings are usually investments that strive for consistent results. They typically include a mix of equities and fixed income, weighted to the investor’s risk tolerance. The core can be globally diversified across countries and regions—Canada, the U.S. and international markets.

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    Anna Sharratt

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  • Using ETFs to get the most out of your TFSA contribution room – MoneySense

    Using ETFs to get the most out of your TFSA contribution room – MoneySense

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    In addition, holding cash can mean missing out on the magic of compounding—and the turbo-boost of growing an investment inside a tax-free savings account (TFSA). Despite its name, a TFSA is not just savings account, and it can hold a wide range of qualified investments, including exchange-traded funds (ETFs.)

    What are ETFs?

    ETFs are large baskets of individual stocks or bonds, similar to mutual funds. They come in many flavours: some track a broad market index, while others focus on a specific sector, region or factor. Unlike mutual funds, ETFs trade on exchanges, and their prices change throughout the day based on supply and demand. You can purchase shares of an ETF, known as units, through a registered dealer and gain exposure to the performance of individual securities within the fund, without owning the securities themselves.

    ETFs are constructed and managed by investment firms. Management fees are included in an ETF’s management expense ratio, or MER, which is expressed as a percentage of the fund’s assets under management. ETF fees can be lower than those of mutual funds—one reason why ETFs are immensely popular with investors.  

    One investment that may fit your needs is an all-in-one ETF, such as Fidelity’s All-in-One Balanced ETF (FBAL) or Fidelity All-in-One Growth ETF (FGRO). An all-in-one ETF generally invests in a selection of lower-cost ETFs to create a globally diversified portfolio of stocks and bonds that can cater to different investment styles.

    Take advantage of tax-free growth

    You can hold ETFs within a TFSA. Introduced in 2009, the TFSA enables Canadian residents aged 18 or older to grow their savings and investments tax-free. Contributions to a TFSA, as well as any income earned in the account—including capital gains and dividends—are not taxed. You can withdraw your holdings anytime, and unlike an RRSP, there is no time limit on having a TFSA account.

    With the ability to grow and withdraw investments tax-free, it’s no wonder TFSAs are so popular. As of the end of 2020 (the most recent statistics available from the Canadian government), about 16.1 million Canadians had one or more TFSAs.

    While Canadians love their TFSAs and ETFs, and they are piling record funds into both, the idea of investing in ETFs inside a TFSA is still eluding many people—and some investors aren’t aware that all-in-one ETFs such as FBAL and FGRO are eligible to be held in a TFSA. Here’s how:

    Capitalize on your contribution room

    As of 2024, the maximum contribution room for a TFSA is $95,000, the total of the annual contribution limits since 2009. The most recent CRA data show that in 2020, only about 1.4 million of Canada’s nearly 16.1 million TFSA holders had contributed their maximum amount. On average, Canadians were holding $26,614 in their TFSAs at the end of 2020, according to the CRA. This means most of us have catch-up room to fill.

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    Vikram Barhat

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  • What’s under the hood? A look at what goes into all-in-one ETFs—and how they work – MoneySense

    What’s under the hood? A look at what goes into all-in-one ETFs—and how they work – MoneySense

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    ETFs already have a reputation for being a simple and cost-effective way to obtain a diversified portfolio. They are usually actively managed, and they generally invest in passive ETFs, which can keep fees low, and investors can choose from a range of options, such as conservative, balanced or growth products.

    ETFs have surged in popularity among DIY investors. While the performance of ETFs is often similar to that of mutual funds, ETFs are easy to buy and sell.

    All-in-one ETFs go one step further. Essentially, they are collections of lower-cost ETFs. Investors don’t have to select, track or manage them—the pros take care of that. All-in-one ETFs can be passively or actively managed, and fund managers will rebalance the portfolio back to the strategic allocation, when necessary and if part of the ETF’s investment mandate.

    How all-in-one ETFs work

    All-in-one ETFs generally consist of a group of globally diversified funds that are balanced to minimize risk.

    Fidelity’s All-in-One ETFs program, for example, has four options. Its All-in-One Balanced ETF (FBAL) has a mix of approximately 59% global equity, 39% global fixed income and 2% cryptocurrencies (as at Oct. 31, 2023), and it has a low-to-medium level of risk. FBAL has an approximate indirect management fee of 0.36%.

    Fidelity’s All-in-One Growth ETF (FGRO) has a higher equity weighting, with approximately 82% global equity, 15% global fixed income, and 3% cryptocurrencies (as at Oct. 31, 2023). It has a medium level of risk. With an indirect management fee of approximately 0.38%, it’s better suited for the investor with a greater appetite for risk and a longer time horizon. Both FBAL and FGRO were launched in 2021.

    Two more funds, Fidelity’s All-in-One Conservative ETF (FCNS) and All-in-One Equity ETF (FEQT), joined the program in 2022. The more conservative of the two, FCNS, offers a global multi-asset strategy with a neutral mix of approximately 40% global equity, 59% global fixed income and 1% cryptocurrencies (as at Oct. 31, 2023). FCNS has a low-to-medium level of risk. FEQT has a neutral mix of approximately 97% global equity and 3% cryptocurrencies (as at Oct. 31, 2023) and has a medium level of risk.

    Fidelity All-in-One ETFs Conservative Balanced Growth Equity
    Risk classification Low to medium Low to medium Medium Medium
    Ticker FCNS FBAL FGRO FEQT
    Global equity 40% 59% 82% 97%
    Global fixed income 59% 39% 15% 0%
    Cryptocurrencies 1% 2% 3% 3%
    Source: Fidelity Investments Canada ULC

    Read more on investing:

    This article is sponsored.

    This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers and approved by the client.

    Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in ETFs. Please read the ETF’s prospectus, which contains detailed investment information, before investing. The indicated rates of return are historical annual compounded total returns for the period indicated including changes in unit value and reinvestment of distributions. The indicated rates of return do not take into account sales, redemption, distribution or option charges or income taxes payable by any unitholder that would have reduced returns. ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.

    The management fees directly payable by Fidelity All-in-One ETFs are nil. The Fidelity All-in-One ETFs invest in other underlying Fidelity ETFs that charge a direct management fee and/or administration fee. Based on the weightings of underlying Fidelity ETFs, it is expected that the effective indirect management and/or administration fee for Fidelity All-in-One Conservative ETF will be approximately 0.35%, Fidelity All-in-One Balanced ETF will be approximately 0.36%, Fidelity All-in-One Growth ETF will be approximately 0.38% and Fidelity All-in-One Equity ETF will be approximately 0.39%. The actual effective, indirect fees may be higher or lower than the estimated rates shown above based on the performance of the underlying Fidelity ETFs, rebalancing events initiated by the portfolio management team of the Fidelity All-in-One ETFs and changes to the strategic allocation, which may include the removal or addition of underlying Fidelity ETFs. Actual indirect fees will be reflected in the management expense ratio (in addition to sales tax, fixed administration fees, commissions, portfolio transaction costs and other expenses, as applicable, of each Fidelity All-in-One ETF and mutual fund version), posted semi-annually.

    Each of the Fidelity All-in-One ETFs has a neutral mix, which includes a small allocation to Fidelity Advantage Bitcoin ETF™ ranging between 1% and 3%. If each portfolio deviates from its neutral mix by greater than 5% between annual rebalances, it will also be rebalanced. Such rebalancing activity may not occur immediately upon crossing that threshold but will occur shortly thereafter.

    The statements contained herein are based on information believed to be reliable and are provided for information purposes only. Where such information is based in whole or in part on information provided by third parties, we cannot guarantee that it is accurate, complete or current at all times. It does not provide investment, tax or legal advice, and is not an offer or solicitation to buy. Graphs and charts are used for illustrative purposes only and do not reflect future values or returns on investment of any fund or portfolio. Particular investment strategies should be evaluated according to an investor’s investment objectives and tolerance for risk. Fidelity Investments Canada ULC and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.

    Portions © 2024 Fidelity Investments Canada ULC. All rights reserved. Fidelity Investments is a registered trademark of Fidelity Investments Canada ULC.


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    Anna Sharratt

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  • Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

    Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

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    The year 2024 marks the dawn of a new era, not just for technology but for finance, as a major victory was achieved for Bitcoin Spot ETFs (Exchang-Traded Funds). It’s now the era where the past will be appreciated for its foresight and doggedness. 

    When the pioneer cryptocurrency and digital currency, Bitcoin launched in January 2009, it was nothing like a real-world asset or of an ‘agreed’ digital value, but an almost neglected bag of gold as it faced enough rejection from all phases. Even with Satoshi’s Whitepaper, Bitcoin wasn’t given a cordial welcome in the world of finance.

    However, for all its promise, BTC remained shrouded in an air of mystery and skepticism. It took several years for Bitcoin to cement its value in the world of technology, finance, and the digital economy, assuming a giant role amidst many other cryptocurrencies. 

    However, On January 10, 2024, the SEC, in its official filing, approves all 11 Bitcoin Spot ETFs. This long-awaited green light from the US SEC marked a watershed moment, not just for Bitcoin, but for the entire cryptocurrency industry. 

    The 14-year journey to this point was arduous and paved with skepticism; regulatory hurdles loomed large, with the SEC citing concerns about market manipulation and investor protection as justification for repeated rejections. Attempts like Bitcoin futures ETFs offered limited exposure, failing to capture the true essence of a spot ETF’s direct price tracking. 

    Bitcoin Spot ETF Explained

    The recent approval of Bitcoin spot ETFs has stirred excitement across the financial landscape. But what exactly are these instruments, and what impact will they have on the future of BTC and, more broadly, on the investment landscape?

    Bitcoin “Spot” ETFs (exchange-traded funds), unlike their futures-based counterparts, don’t track the price of Bitcoin futures contracts. Instead, they take a more direct approach, holding the underlying asset – Bitcoin itself – in secure digital custodians. 

    This eliminates the potential for “basis risk,” a phenomenon where futures prices deviate from the actual cash price of Bitcoin. Simply put, Spot ETFs offer a more straightforward and transparent way to gain exposure to BTC’s price movements, akin to traditional gold-backed ETFs.

    Bitcoin Spot ETFs function similarly to their traditional counterparts, such as those tracking stock market indices. They pool investor capital, purchasing Bitcoin and holding it securely. Each share of the ETF represents a fractional ownership of the pooled Bitcoin, allowing investors to participate in the market without directly holding or managing the cryptocurrency themselves. This eliminates technical complexities and potential security risks, particularly for those with limited crypto experience, potentially broadening the base of Bitcoin investors. 

    The Genesis Of Bitcoin ETFs (Early Days and Conceptualization – 2013-2017)

    The earliest sparks of a Bitcoin ETF concept date back to 2013, when the Winklevoss twins first proposed their Gemini ETF. Winklevoss twins, Cameron and Tyler, both tech entrepreneurs with a vision in 2013, submitted the first application for a Bitcoin ETF, the Gemini ETF, sparking the decade-long journey to regulatory approval. 

    This audacious proposal was outrightly rejected by the SEC during the tenure of its former chairman, Jay Clayton, who later resigned in 2020 and became a supporter of cryptocurrency. Interestingly, Clayton is now actively involved in crypto regulations when he joined the advisory board of Fireblocks, a crypto custody platform.

    The following years were a crucible of innovation and uncertainty. While Bitcoin’s market capitalization surged, attracting both fervent supporters and cautious observers, the SEC remained hesitant. The regulator’s concerns about market manipulation, price volatility, and the nascent state of blockchain technology were cited as justifications for repeated rejections of subsequent ETF proposals, including Grayscale’s attempt to convert its Bitcoin Investment Trust into a spot ETF.

    Yet, amidst the rejections, there were flickers of progress. Technological advancements improved blockchain security and custody solutions, addressing initial concerns about vulnerability and potential wash trading. The global adoption of Bitcoin, particularly in Canada with its approval of Spot ETFs in 2021, served as a compelling case study for increased accessibility and market stability.

    This period also saw the SEC’s stance slowly evolve. The appointment of Gary Gensler as SEC Chair in 2021 brought a newfound openness to dialogue and exploration of potential regulatory frameworks for cryptocurrencies. The approval of the first US-listed futures-based bitcoin ETF in October 2021, despite its limitations, offered a glimpse of what could be.

    The Turning Point: A Decade Of Persistence Pays Off (2018-2023)

    While the 2017-2018 crypto boom and subsequent crash sent shockwaves through the industry, it also served as a crucible, forging resilience and fueling a renewed focus on compliance and innovation. Industry figures like Grayscale, undeterred by previous rejections, continued to refine their proposals, incorporating crucial safeguards and addressing regulatory concerns.

    This relentless pursuit of approval finally yielded results in 2023. In May, Cathie Wood’s ARK Investments filed for a spot bitcoin ETF, setting a definitive deadline for the SEC’s decision. 

    Then, in June, BlackRock’s entry into the arena with its own Spot Bitcoin ETF application sent ripples of excitement through the financial world. This move by a traditional financial giant signalled a crucial shift in sentiment, demonstrating growing institutional confidence in BTC’s potential.

    The months that followed were a whirlwind of activity. A flurry of applications from firms like Fidelity and Invesco poured in, fueled by the momentum of BlackRock’s move and the prospect of imminent approval. In August, a pivotal legal victory for Grayscale in the D.C. Circuit Court further strengthened the case for spot ETFs, forcing the SEC to re-examine its previous rejections.

    Finally, the SEC, in a historic decision, greenlighted 11 spot bitcoin ETF proposals, including those from BlackRock, Fidelity, and VanEck. This moment marked the culmination of a decade-long struggle, signifying the mainstream acceptance of investor participation in the cryptocurrency space.

    Ripples Across The Crypto Landscape: Implications Of Bitcoin Spot ETFs (2024)

    The arrival of spot ETFs has cast a wide net, sending ripples across various spheres of the financial world. There are a lot of potentials and challenges presented by spot ETFs, vital impact on market stability, institutional adoption, and regulatory oversight. There are positive predictions that the Bitcoin market cap could rise above $1 Trillion after the launch of Bitcoin Spot ETFs.

    Let’s contemplate the broader significance of this pivotal moment, what it means for the future of finance, and its relationship between technology and traditional financial systems here.

    Investor Crossroads

    For retail investors, Spot ETFs offer a convenient and familiar way to participate in the Bitcoin market without directly holding the cryptocurrency. This opens the door to broader adoption and increased liquidity, potentially leading to smoother price discovery and reduced volatility. The influential American magazine, Forbes predicted the BTC price will trade as high as $80,000 as a result of Bitcoin Spot ETFs’ approval. 

    The year 2024 is also shaping up to be a good one, if not one of the best seasons for cryptocurrency, especially Bitcoin, as it’s the season for Bitcoin halving, which will have another mega impact on the crypto industry. 

    However, the inherent risks of Bitcoin, including price fluctuations and potential exposure to fraud, must not be underplayed. Investors should approach spot ETFs with cautious optimism, ensuring a proper understanding of the technology, market dynamics, and associated risks before venturing in.

    Institutional Embrace Bitcoin

    The arrival of spot ETFs marks a significant step towards institutional acceptance of Bitcoin. The involvement of established financial institutions like BlackRock and Fidelity lends credibility to the cryptocurrency and paves the way for further integration with traditional financial products and services.

    Concerns remain about the impact of institutional involvement on market manipulation and potential conflicts of interest. However, regulatory oversight and robust compliance frameworks will be crucial in ensuring a fair and transparent market for all participants.

    Market Redefined

    Spot ETFs could potentially lead to greater market stability by introducing institutional investors and their risk management expertise. This could mitigate some of the inherent volatility of the cryptocurrency market, attracting a wider range of investors and fostering sustainable growth.

    The SEC’s approval represents a cautious acceptance, not a blank check. Further regulatory clarity and potential adaptation of existing frameworks might be required to effectively address the unique challenges posed by the integration of cryptocurrencies into mainstream financial systems.

    Beyond Bitcoin

    Spot ETFs could act as a gateway for investors to explore the broader crypto landscape. Their familiarity and ease of access might encourage exploration of other promising blockchain-based projects, accelerating the overall growth and development of the cryptocurrency ecosystem.

    The success of spot ETFs will hinge on the continued evolution of blockchain technology and associated infrastructure. Scalability, security, and user experience will remain key areas of focus for ensuring the smooth functioning and widespread adoption of crypto-based financial products.

    The 11 Spot Bitcoin ETFs products (with their ticker symbols) approved  on January 10, 2024, are:

    • Blackrock’s iShares Bitcoin Trust (IBIT)
    • ARK 21Shares Bitcoin ETF (ARKB)
    • WisdomTree Bitcoin Fund (BTCW)
    • Invesco Galaxy Bitcoin ETF (BTCO)
    • Bitwise Bitcoin ETF (BITB)
    • VanEck Bitcoin Trust (HODL)
    • Franklin Bitcoin ETF (EZBC)
    • Fidelity Wise Origin Bitcoin Trust (FBTC)
    • Valkyrie Bitcoin Fund (BRRR)
    • Grayscale Bitcoin Trust (GBTC)
    • Hashdex Bitcoin ETF (DEFI)

    Conclusion

    The approval of Bitcoin spot ETFs is a watershed moment, not just for the cryptocurrency itself, but for the entire financial landscape. It marks a new chapter in the saga of Bitcoin, one where its disruptive potential can be harnessed within the framework of established financial systems.

    Also, this path forward is paved with both opportunities and challenges. Navigating regulations and addressing investor risk concerns are important to ensure seamless integration with traditional financial systems and regulatory bodies, which will be crucial in determining the ultimate success of this technological leap.

    Final Thoughts

    The approval of Bitcoin spot ETFs is not merely a regulatory green light; it’s a resounding declaration of Bitcoin’s arrival on the main stage of finance.

    Related Reading: Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

    However, the journey is far from over. This approval is a milestone, not a destination. As we stand at this turning point, it’s important to remember the spirit of defiance that birthed BTC. It was born from a desire for autonomy, for freedom from centralised control, and for a more equitable financial system. 

    While ETFs offer a bridge between this decentralized world and the established financial order, it’s crucial not to lose sight of these core principles.

    BTC price struggles post-Bitcoin Spot ETF approval | Source: BTCUSD on Tradingview.com

    Featured image from Cryptopolitan, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Making sense of the markets this week: January 21, 2024 – MoneySense

    Making sense of the markets this week: January 21, 2024 – MoneySense

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    The acquisition looks to be turning out quite well for America’s largest bank, as it claimed that the former First Republic Bank contributed $4.1 billion in profit in 2023.

    Dimon provided some macroeconomic context in forward guidance. “The U.S. economy continues to be resilient, with consumers still spending, and markets currently expect a soft landing.” 

    Of course, being a banking CEO, he then had to hedge his position by saying deficit spending “may lead inflation to be stickier and rates to be higher than markets expect.” 

    New Morgan Stanley CEO Ted Pick cited two “major downside risks” as reasons for concern: geopolitical conflicts and the U.S. economy. 

    Mirroring Dimon’s “on one hand, and on the other hand” PR formula, Pick stated, “The base case is benign, namely that of a soft landing. But, if the economy weakens dramatically in the quarters to come and the [U.S. Federal Reserve] has to move rapidly to avoid a hard landing, that would likely result in lower asset prices and activity levels.”

    Like their Canadian banking brethren, the U.S. banks all reported substantial increased provisions for credit losses. This money, set aside to cover the inevitable increase in interest-led loan delinquencies, also weighs on banks’ bottom lines.

    Canadians looking for exposure to U.S. banks can get it through TSX-listed ETFs, such as the Harvest US Bank Leaders Income ETF (HUBL), RBC U.S. Banks Yield Index ETF (RUBY) and BMO Equal Weight US Banks Index ETF (ZBK). Investors can also get single-stock exposure to JPMorgan, Bank of America and Goldman Sachs in Canadian dollars through Canadian Depository Receipts (CDRs) listed on the Cboe Canada Exchange.

    Check MoneySense’s ETF screener for all ETF options in Canada.

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    Kyle Prevost

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  • Making sense of the markets this week: January 14, 2024 – MoneySense

    Making sense of the markets this week: January 14, 2024 – MoneySense

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    2023 asset returns versus the last 10 years

    As we enter the New Year and investing columnists write their prediction columns, it’s also a worthwhile exercise to take a look back at the history of just how varied returns have been across various asset classes. The chart below comes from Wealth of Common Sense blogger Ben Carlson. It shows and the equities shown were available on the major U.S. stock exchanges.

    Source: A Wealth of Common Sense

    Here’s the Canadian total market data below for comparison. Slide the columns right or left using your fingers or trackpad, or hover your mouse over the table to reveal a scroll bar below.

    2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 10-year
    CAD total market 10.55% -8.32% 21.08% 9.10% -8.89% 22.88% 5.60% 25.09% -5.84% 11.75% 7.62%
    Source: SPG Global

    My main takeaways from Carlson’s data:

    • The year 2022 was really bad for the value of most assets; 2023 was really good.
    • Commodities saw a real drop from 2022.
    • Despite excellent years for commodities in 2021 and 2022, the 10-year returns remain negative.
    • Reversion to the mean is pretty clear if you look at the last 10 years across all the asset classes.
    • If we go all the way back to the end of 2008, the S&P 500 is up nearly 350%. That’s a pretty incredible run.
    • Bonds have had a pretty rough stretch the last 10 years, only outpacing cash by 0.7% per year.

    I couldn’t track down the total return of Canadian stocks over the past 15 years, but the S&P/TSX Composite Index has increased by more than $2.75 trillion since 1998, when SPG Global started keeping track. That’s a total return of nearly 600%! (Exclamation point warranted.)

    So, despite some bad years, for every $1 you invested in the broad Canadian stock market as far back back in 1998, you’d have $6 today. Sure, inflation would have eaten up some of that gain, but that’s still a great run.

    Any time we look at these types of charts, we know that people who forecast based on trends of the preceding year are rarely correct. Returns over one-year timeframes are mostly “a random walk.” That said, equities (large-cap, small-cap, U.S. or Canadian) come out on top more often than not.

    Speaking of asset classes, bitcoin exchange-traded funds (ETFs) started trading Thursday, after the U.S. Securities & Exchange Commission approved 11 ETFs tied to the spot price of bitcoin. I’ll have more to say about this next week.

    The small short? The big long?

    Much of the world was introduced to short selling via the movie The Big Short, based on the book by Michael Lewis of the same name (WW Norton, 2011). When you “short” a stock, you’re essentially placing a bet that the stock’s price will go down within a given period of time. The more it goes down, the more money you make. If it goes up though, the losses can pile up quickly.

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    Kyle Prevost

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  • 2024 Bitcoin Preview: Crypto Analyst Weighs In On BTC Price Action

    2024 Bitcoin Preview: Crypto Analyst Weighs In On BTC Price Action

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    Amid the excitement surrounding the approval of Bitcoin Spot Exchange-Traded Funds (ETFs), Polish crypto analyst Adrian Zduńczyk has shed his insights on the price action of BTC in 2024 and beyond.

    Bitcoin Price Action In 2024 And Beyond

    Zduńczyk, who is the Chief Executive Officer (CEO) of Birb Nest shared his insights in a recent interview with Thinking Crypto founder Tony Edward. In the interview, Zduńczyk revealed his short-term expectations for Bitcoin, the impact of ETF approval, and post-halving expectations for price.

    Zduńczyk began by drawing attention to the recent surge in Bitcoin prices while also noting a minor decline. He emphasized the significance of differentiating between speculations, expectations, and actual trading.

    He further talked about the use of technical indicators to spot possible market reversals. These include the rate of change and the Relative Strength Index (RSI).

    Zduńczyk noted how the market trend has persisted, pointing out crucial metrics such as the 200-day moving average. According to him, the 200-day moving average has been indicating favorable trends since the year started. The price of Bitcoin has increased by a notable 190% year to date, despite a slight correction. This indicates the strength of the bull market that has been present since January.

    When asked about the impact of Bitcoin spot ETF on the asset’s price, he highlighted seasonal trends in Bitcoin’s performance by establishing a correlation with historical data. He explained that he would rather go with the facts than opinions. This is because “it is difficult to comment on opinions,” which by definition is “different from the facts.”

    Due to this, Zduńczyk has suggested that the community should focus on the facts this time rather than opinions. This is because facts rely on seasonal studies and prices do the same.

    Observing the upward tendency in January over time, he provided an explanation of the seasonal pattern in the January barometer. As a result, he proposed an 80% chance of a favorable year if January ends well.

    All-Time High Price Target Post BTC Halving

    Zduńczyk provided insights into the possibility of Bitcoin reaching a new all-time high in 2025. He made this claim after analyzing its past four-year cycles and their relationship to the presidential stock market cycle.

    The CEO stated that Bitcoin has always experienced “powerful rallies” after each halving. He further backed up his claims with a chart demonstrating BTC price rallies since the halving began.

    BTC price performances in previous halving cycles | Source: Thinking Crypto on YouTube

    Furthermore, Zduńczyk highlighted that it would not be shocking to see a three-to-five-fold increase following the halving price. However, he has expressed caution as no one knows exactly how high Bitcoin will go.

    So far, Zduńczyk predicts an all-time high price for BTC between $150,000 to $200,000 post-halving. In addition, he stated that the trends are unprecedented as the price could go higher than that or even lower.

    Bitcoin
    BTC trading at $47,105 on the 1D chart | Source: BTCUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Godspower Owie

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  • ETFs and RESPs: It’s always a good time to invest in education – MoneySense

    ETFs and RESPs: It’s always a good time to invest in education – MoneySense

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    With that in mind, here’s a key date to circle on your calendar: Dec. 31. That’s the deadline for making RESP contributions to maximize government RESP grants each year. The Canada Education Savings Grant (CESG) matches 20% of what you put in, up to a limit of $500 annually. To receive the full $500, your contributions must total at least $2,500 by the end of December. The lifetime CESG maximum per beneficiary (child) is $7,200, and you can only catch up one year at a time—so, you can see why that annual deadline merits attention. That’s especially true if you only have a few years to save before your child heads off to school.

    Now is a great time to plan your contributions for this year. Here are some things to consider.

    Despite its name, an RESP is much more than just a cash savings account. In fact, just holding cash in an RESP may not always be the best strategy, as inflation can erode its value over time. It’s worth looking into different ways to grow that money.

    There’s no one-size-fits-all answer for the best RESP investment options. The right mix for your family will depend on several factors, including your financial circumstances, how much time you have, and how comfortable you are with risk. To help you make the most of your RESP, the Canada Revenue Agency (CRA) provides a list of “qualified investments” for this account, including the following:

    • Bonds: These can be either government-issued or corporate-issued. Bonds are generally seen as a safer investment compared to stocks, offering fixed interest payments over time.
    • Guaranteed investment certificates: GICs are issued by financial institutions, and you can choose terms such as one, two, three or five years. At the end of the term, you’ll receive a guaranteed amount of interest. Generally, you must wait until then to access your money.
    • Stocks: Investing in individual stocks can offer high returns, but they generally come with higher volatility than bonds and GICs. It’s essential to thoroughly research the companies you’re thinking about investing in—and remember, picking stocks can be risky!
    • Mutual funds: These funds can hold a mix of stocks, bonds and other assets. They offer diversification and are managed by financial professionals. Investors pay a percentage of the value of their investment towards annual management fees.
    • Exchange-traded funds: ETFs are similar to mutual funds in that they can hold a mix of assets like stocks and bonds. However, ETF shares trade on stock exchanges, just like individual stocks. Most ETFs are passively managed, but more active ETFs are coming onto the market.

    ETFs are a fast-growing asset class in Canada. They offer investors numerous benefits, including:

    • Built-in diversification: ETFs may bundle various assets, providing wide exposure across different sectors, asset classes and geographies, which helps in reducing investment risk.
    • Professional management: With ETFs, a fund manager oversees the selection and rebalancing of holdings, often trying to replicate specific stock market indices (such as the S&P 500), thus reducing the complexity of managing individual stocks and bonds.
    • Ease of transactions: ETFs are traded on stock exchanges and are accessible through financial advisors and online brokers.
    • Flexible asset allocation: ETFs offer a spectrum of asset allocation options, so they may be suitable for investors with different risk tolerances and investment timelines.

    Choosing the best ETF for your RESP largely depends on two variables: your time horizon (how long until your child needs the funds) and your risk tolerance (how much market fluctuation and potential losses you can comfortably handle).

    To simplify this decision-making process, one option to consider is an all-in-one ETF, such as those offered by Fidelity. These ETFs offer different asset allocations and risk classifications. Fidelity’s All-in-One ETFs have the following target asset allocations and risk classifications (as at Oct. 31, 2023):

    Fidelity All-in-One ETFs Conservative Balanced Growth Equity
    Risk classification Low to medium Low to medium Medium   Medium
    Ticker FCNS FBAL FGRO FEQT
    Equity 40% 59% 82% 97%
    Fixed income 59% 39% 15% 0%
    Crypto 1% 2% 3% 3%
    Source: Fidelity Investments Canada ULC

    Fidelity’s suite of All-in-One ETFs offers strategic diversification, with most of them giving you exposure to global bonds and stocks from all market sectors. Interestingly, they even include a small exposure to cryptocurrency (1% to 3% depending on the fund), adding a modern twist to traditional investment portfolios. (Read more about crypto in Fidelity ETFs.)

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    Tony Dong

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  • Making sense of the markets this week: January 7, 2024 – MoneySense

    Making sense of the markets this week: January 7, 2024 – MoneySense

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    A look at 2024

    Since we made this crystal ball thing look pretty easy last year with our 2023 markets forecast, we’re at it again for 2024. And, it’s always good to begin a market predictions column with the caveat that this stuff is really hard to do.

    It’s impossible to make accurate predictions consistently, especially about the markets, as there are just too many variables at play to always get it right. I mean, if you could tell me the outcomes of wars, upcoming elections, more pandemics and unexpected natural disasters of 2024, then I could give my some predictions with a little more confidence. 

    All that said, there are some big-picture trends and general rules of thumb that Canadian investors can apply to their thinking about the year ahead. 

    So, with those caveats out of the way, here’s a look at how we see the markets playing out this year.

    Canada’s TSX 60 will gain 15%, outperforming the 8% gain for the S&P 500

    It’s not that Canada’s economy is going to do better than America’s, or that our domestic companies have any hidden advantages. A prediction for TSX 60 outperformance is simply a bet that lower valuations may suffer less from the negative headlines than any higher-priced valuations of the S&P 500 composite index.

    The 500 biggest companies in the U.S. had a fabulous 2023 and finished up 23% for the year. The markets always look ahead, true, and I think they foresaw sunny skies for late 2024 as early as spring 2023. Consequently, there would have to be additional excellent news coming to light for a repeat of such a strong year.

    Canada, on the other hand, saw its TSX 60 index go up about 8%. There were a lot of negative headlines about lack of economic growth in Canada, and no equivalent of an “AI bubble” to drive a positive narrative for boring companies like Canadian railways or pipelines.

    Right now, a TSX 60 exchange-traded fund (ETF), such as XIU, trades at about a price-to-earnings (P/E) ratio of 13x. An S&P 500 ETF, like SPY, clocks in at about 24x. I don’t think there’s any debate that the U.S. has more world-beating companies and a much more favourable tax environment than Canada. But are American companies that much better that they should be valued so much higher? Based on historical averages, we’re betting no.

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    Kyle Prevost

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