Raymond is the Director of Research at PWL Capital. He rigorously analyzes PWL’s investment strategies and makes sure they are well supported by academic research.

Market Research

It’s Wrong to Compare ETFs with CDOs

According to this Bloomberg article, Michael Burry (a hedge fund manager and the main character of the novel and movie The Big Short) draws a parallel between Collateralized Debt Obligations (CDOs), whose disastrous flaws were partly responsible for the 2008 financial crisis, and exchange-traded funds (ETFs), and concludes that there is potential for a potential similar outcome in this market as well.

Market Research
Stock Markets Ticker Window Street

Spotlight on high-yield bond ETFs

Given the meagre interest rates paid by investment-grade bonds and GICs, it is only normal that people are interested in investments with a higher return. That includes advisors, as high-yield bond (HYB) exchange traded funds (ETFs) offered by BMO and iShares alone hold over $2 billion in assets.That’s not chicken feed.

Market Research

Is your portfolio sufficiently diversified?

We have recently learned of the death of British mathematician Edward H. Simpson (1922-2019). Simpson first distinguished himself during World War II as a code breaker for the Royal Navy, when he enabled the interception of numerous ships carrying supplies for the troops led by Germany’s General Rommel.

Market Research
Keyboard White ETF in Writings

Even with equal fees, I prefer passive ETFs!

Shock and awe! In 2018, Vanguard Canada, a fervent advocate of passive management, launched traditional, actively managed mutual funds. Actively managed mutual fund companies also successively launched their own array of exchange traded funds (ETFs). As a result, the great majority of the Canadian market’s 33 suppliers now offer mainly active management. Are we looking at the end of passive ETFs?

CFA, Director of Research
Raymond contributes to PWL with his thirty years of experience in investment strategy and fixed income portfolio management.

Recommended Resources

    • The Passive Vs. Active Fund Monitor (2018)

      In 2018, Canadian passive funds increased their market share from 10.0% to 10.5% on the back of a positive flow of $9 billion. Meanwhile, Canadian active funds attracted $6 billion. We estimate that Canadian passive funds post a weighted average Management Expense Ratio of 0.30%, compared to a substantial 1.66% for active funds.

      Contributors
    • Great Expectations 2019

      How to estimate future stock and bond returns when creating a financial plan

      Contributors
    • Are Vanguard’s Canadian-listed ETFs at Risk of a Major Capital Gains Distribution?

      This paper reviews the risk of a capital gains distribution specific to Vanguard ETFs, more specifically from the perspective of Canadian taxable investors. We conclude that Vanguard’s multiple-share-class structure is very unlikely to trigger large capital gains distributions.

      Contributors
    • A Guide to Responsible Investing – Doing Well by Doing Good

      ESG and SRI investments are becoming more prevalent in the investment universe. This document covers the three main strategies of ESG investing: passive, integration, and active. We review the implementation of each strategy, the consequences for portfolio returns, and we recommend some options for investing according to ESG.

      Contributors
    • The Passive vs. Active Fund Monitor (2018)

      This report describes the competitive landscape for passively and actively managed funds over the last twelve years in Canada and the United States.

      Contributors
    • Market Statistics – August 2019

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of August for the various Canadian, U.S. and international markets that we follow.

      Contributors
    • Market Statistics – July 2019

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of July for the various Canadian, U.S. and international markets that we follow.

    • Market Statistics – June 2019

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of June for the various Canadian, U.S. and international markets that we follow.

    • Market Statistics – May 2019

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of May for the various Canadian, U.S. and international markets that we follow.

      Contributors
    • Market Statistics – April 2019

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of April for the various Canadian, U.S. and international markets that we follow.

    • Market Statistics – August 2019
      Summary

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of August for the various Canadian, U.S. and international markets that we follow.

      Contributors
    • Market Statistics – July 2019
      Summary

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of July for the various Canadian, U.S. and international markets that we follow.

    • Market Statistics – June 2019
      Summary

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of June for the various Canadian, U.S. and international markets that we follow.

    • Market Statistics – May 2019
      Summary

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of May for the various Canadian, U.S. and international markets that we follow.

      Contributors
    • Market Statistics – April 2019
      Summary

      Looking for reliable data on recent market performance? Here you’ll find a PDF document of the monthly statistics for the month of April for the various Canadian, U.S. and international markets that we follow.