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Summary
- The ETFs of iShares S&P/TSX 60 Index (TSX:XIU) and BetaPro Natural Gas Leveraged Daily Bull ETF (TSX:HNU) are currently trending on the TSX.
- There are over 700 ETFs listed on the TSX. As of June 2020, as many as 79 ETFs debuted on the TSX this year.
- The iShares S&P/TSX 60 Index ETF climbed over 10 per cent in the last six months, while the BetaPro Natural Gas Leveraged Daily Bull ETF (TSX:HNU) rebounded nearly 18 per cent in the last three months.
Currently trending high on the Toronto Stock Exchange (TSX) are the ETFs of iShares S&P/TSX 60 Index (TSX:XIU) and BetaPro Natural Gas Leveraged Daily Bull ETF (TSX:HNU). Investors seeking to gain access to an assortment of a diversified portfolio of companies often opt for an ETF.
An ETF, or Exchange Traded Fund, gives investors the exposure to a bunch of sectors and stocks at once. They are also passively managed funds. When parking funds in an ETF, the investments are distributed across the underlying stocks.
Before the COVID-19 pandemic led the economy into a struggle, there was an influx of 21 new issues on the TSX back in January. Once the lockdown restrictions kicked in, the number of new issues dropped noticeably, with just four new entries coming in April.
But as June came by, the numbers spiked to as many as 22 new issues on the top Canadian stock exchange platform. In September, the TSX welcomed 21 new issuers, including new 18 exchange traded funds (ETFs). Some of the newbies are iShares ESG Balanced ETF Portfolio (TSX:GBAL), Mackenzie Balanced Allocation ETF (TSX:MBAL) and Vanguard Retirement Income ETF Portfolio (VRIF).
There are over 700 ETFs listed on the TSX, as per the TMX data, providing exposure to different asset classes, regions, etc across the Canadian market.
Let’s took a closer look at the iShares S&P/TSX 60 Index and BetaPro Marijuana Companies Inverse ETF Shares to understand their performance better.
iShares S&P/TSX 60 Index ETF (TSX:XIU)
This ETF is offered by investment management company BlackRock Inc. The company claims iShares S&P/TSX 60 Index ETF is the first ETF in the world, having begun trading all the way back to 1990. It tracks the TSX 60 index, which comprises of the top 60 companies in Canada. These would include Shopify Inc (TSX:SHOP), Royal Bank of Canada (TSX:RY), Toronto Dominion Bank (TSX:TD), Canadian National Railway (TSX:CNR), Enbridge Inc (TSX:ENB), and much more.
The iShares S&P/TSX 60 Index ETF is down over five per cent this year. It registered a sharp drop amid the coronavirus pandemic-triggered market crash back in March, falling to its lowest point of C$ 17.3 (March 23) so far this year. Since then, it has recovered over 40 per cent in the following seven months.
The ETF climbed over 10 per cent in the last six months and has a 10-day average trading volume of 2.5 million.
YTD chart of iShares S&P/TSX 60 Index ETF; Source: Refinitiv, Thomson Reuters
The iShares S&P/TSX 60 Index ETF distributes a quarterly dividend of C$ 0.189. It currently has a dividend yield of 3.227 per cent, as per the data available on the TMX. Its price-to-earnings (P/E) ratio stands at 16.2, its price-to-book (P/B) ratio is 1.83 and price-to-cash flow (P/CF) is 10.2. It also has a return to equity of 11.85 per cent and a return to assets of 3.07 per cent.
iShares TSX 60 Index fund is currently trading at C$24.265 per unit.
BetaPro Natural Gas Leveraged Daily Bull ETF (TSX:HNU)
Horizons ETFs Management (Canada) Inc announced back in August that with its unitholders having green lit the proposed changes, two of its leveraged natural gas ETFs would be tracking a proprietary index and using variable amounts of leverage. One of these funds was renamed as the BetaPro Natural Gas Leveraged Daily Bull ETF.
The BetaPro Natural Gas Leveraged Daily Bull ETF tracks the proprietary index of Horizons Natural Gas Rolling Futures Index and seeks to correspond up to twice the daily bull ETFs.
The Toronto-based financial services company incepted the predecessor ETF in January 2008. It has a net asset of C$ 65.9 million as of Monday, October 26.
YTD chart of BetaPro Natural Gas Leveraged Daily Bull ETF; Source: Refinitiv, Thomson Reuters
Natural gas ETFs have suffered this year in the wake of the coronavirus pandemic and the global oil demand fluctuation. The BetaPro Natural Gas Leveraged Daily Bull ETF is down nearly 66 per cent this year and about 10 per cent quarter-to-date (QTD).
The natural gas ETF declined 30 per cent in the last six months. However, it recorded a recovery of nearly 18 per cent in the last three months and currently has a 10-day average trading volume of over 1.55 million.
While Horizons announced a quarterly dividend for some of its ETFs back in September, the BetaPro Natural Gas Leveraged Daily Bull was not one of them.
