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Top 20 Canadian ETFs During US Tariff Periods
This article identifies the top 20 Canadian ETFs that outperformed their category peers during two periods of US tariffs on Canadian goods (June 1, 2018 – May 17, 2019, and Aug. 16, 2020 – Oct. 27, 2020), weighing the first period 70% and the second 30%, based on a Morningstar three-star or better rating, and categorizes them by management style and Morningstar Medalist rating.
- How did the management style (active, passive, or strategic beta) of the top-performing ETFs correlate with their resilience during the tariff periods?
- The analysis considered factors such as sector exposure and currency hedging but focused primarily on total returns during tariff periods. The top 20 ETFs, listed in an accompanying table, are categorized by management style (active, passive, or strategic beta) and include Morningstar ratings and Medalist ratings for additional context.
- What are the key sector exposures of the top-performing ETFs, and what insights do these exposures offer regarding portfolio construction strategies to mitigate future trade-related risks?
- Future research could explore the specific sector compositions of the top-performing ETFs to identify industry resilience during trade disputes. This could help investors develop more robust portfolios less vulnerable to trade-related volatility. The study highlights the importance of risk-adjusted returns and the need to consider various factors beyond simple return metrics.
- What were the top 20 Canadian ETFs that outperformed their category peers during the two periods of US tariffs on Canadian goods, considering a weighted average of performance across both periods?
- This article analyzes the performance of 1,588 Canadian ETFs during two periods of US tariffs on Canadian goods (June 1, 2018 – May 17, 2019, and Aug. 16, 2020 – Oct. 27, 2020). A weighted ranking (70% for the first period, 30% for the second) identified the top 20 ETFs that outperformed their category peers, based on a Morningstar three-star or better rating.
Cognitive Concepts
Framing Bias
The framing is generally neutral. The headline and introduction clearly state the purpose: to identify Canadian ETFs that performed well during periods of US tariffs. The methodology is transparent, detailing the weighting system and screening criteria used. However, the emphasis on the top 20 ETFs could overshadow the performance of other funds, subtly suggesting that only these are worthwhile.
Language Bias
The language is largely neutral and objective, using terms like "shone through," "weathered the tariffs well," and "performed at least as well as their category peers." These phrases, however, could be slightly more neutral, such as "performed strongly" or "met or exceeded peer performance." The article avoids overly positive or negative language.
Bias by Omission
The analysis focuses on Canadian ETFs' performance during specific tariff periods, potentially omitting other relevant factors influencing returns, such as broader market conditions or sector-specific trends. While acknowledging limitations of scope, the article could benefit from mentioning these broader economic influences.