This bi-weekly report identifies the best and worst equity ETF performers over the previous three-month period in an attempt to uncover nascent sector and individual stock trends. Leveraged ETFs are not included.
The top performing ETF is the CI Galaxy Blockchain Index ETF, which tracks the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity Hedged to CAD Dollars Index. The fund is up 35.4 per cent thanks primarily to Bitcoin’s 36.3 per cent appreciation in the past three months. The top holdings are all Bitcoin mining services providers – Cipher Mining, Terawulf Inc. and Hut 8 Mining- which were up 29.0 per cent, 15.8 per cent and 7.0 per cent, respectively.
The CI Global Climate Leaders ETF retains a spot in the top five with a 33.0 per cent appreciation. Top holding Constellation Energy, a nuclear power provider, continues to perform well with a 44.9 per cent trailing three-month return. Nvidia is the second largest position, up 31.8. Another top holding, Linde PLC, has caught my attention as a possible leader in the U.S. materials sector.
The Nvidia Yield Shares Purpose ETF, which uses covered calls to enhance returns on the underlying stocks, is higher by 32.9 per cent. Two industrial metals ETFs, The Global X Copper Producers Index ETF (up 31.7 per cent) and the BMO Equal Weight Global Base Metals Hedged to CAD ETF (24.9 per cent), leveraged the copper commodity price’s 15.9 per cent three-month surge.
The BMO Ark Genomic Revolution Fund ETF is the biggest laggard among equity ETFs this week after losing 15.1 per cent over the past three months. Top holding, genome splicer CRISPR Therapeutics, was down 16.8 per cent for the period. Synthetic DNA developer Twist Bioscience Corp dropped 3.9 per cent and Recursion Pharmaceuticals, a company combining artificial intelligence and automation to treat cellular disorders is the third largest holding and fell 12.7 per cent.
Purpose Marijuana Opportunities ETF dropped 12.3 per cent in the past three months. Top position Verano Holdings Corp was 20.0 per cent lower. Green Thumb Holdings was down a scant 0.6 per cent while Trulieve Cannabis, the third biggest holding, was actually up 16.1 per cent.
The CI Bio-Revolution Index ETF was the third weakest performer, falling 10.3 per cent. The fund attempts to mirror the Solactive Global Genomics Immunology and Medical Revolution CAD Hedged Index. Top holdings are Illumina Inc., down 14.5 per cent, Swiss pharmaceutical and biotech firm Lonza Group AG, managing to buck the trend, with a gain of 20.2 per cent, and Beam Therapeutics, a company that provides gene editing technologies, down 17.7 per cent.
The Apple Yield Shares Purpose ETF, like the Nvidia-related ETF already mentioned, uses derivatives to generate yield from Apple shares. Apple Inc. was lower by 9.3 per cent which sent the ETF lower by 10.3 per cent.
Performance for the CIBC Clean Energy ETF was also weak, down 9.6 per cent. Top holdings First Solar Inc. was up 20.1 per cent but grease trap specialists Darling Ingredients was down 3.5 per cent and Brookfield Renewable Partners LP was lower by 6.9 per cent.
I find it notable that U.S. nuclear power providers are performing well but this does not extend to uranium producer Cameco Corp. I’m starting to look at Linde PLC as a potential beneficiary of U.S. fiscal spending to support industrials and also re-shoring. Genomics, cannabis and non-nuclear renewable power are still seemingly trying to find a bottom.
Scott Barlow