Most markets rebounded in May

Article Excerpt

The post-COVID-19 recovery in most assets continued in May and also broadened to include commodities, U.S. homebuilders, and even marijuana stocks. The extraordinary level of stimulus spending already provided by central banks and governments likely encouraged investors to buy early on in the recovery. At the broad market level, the Vanguard Total World Stocks ETF (VT) gained 6.3% in May, the Vanguard S&P 500 ETF (VOO), 6.0%, and the iShares MSCI Canada Equity ETF (EWC), 5.2%. The iShares Emerging Markets ETF (IEMG) gained only 2.5% as a major component, China, was left behind in the sharp rallies experienced elsewhere. Market volatility dropped substantially from the elevated levels reached in March, with the BetaPro S&P 500 Volatility ETF (HUV) declining by 12%. Fixed income lagged during the month. The Vanguard International Bond ETF (BNDX) gained 0.4% while Canadian bonds in the form of the iShares Canadian Government Bond ETF (XGB) added 0.5%. Oil was the big gainer in May as the commodity bounced back from the depressed levels seen in March and April. The United States Oil ETF (USO) gained…

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