Stocks recover, but volatility remains

Article Excerpt

The market recovery continued in June to cap off the second quarter’s strong performance. In fact, U.S. equities delivered their best quarter since 1998 while Canadian equities saw their best quarter since 2009. This followed one of the worst quarters ever recorded in both the U.S. and Canada. That means North American stock markets remain down from their highs before the pandemic. At the broad market level, the Vanguard Total World Stocks ETF (VT) gained 18.0% in the quarter, the Vanguard S&P 500 ETF (VOO) 17.9%, and the iShares MSCI Canada Equity ETF (EWC) 22.0%. The iShares Emerging Markets ETF (IEMG) also joined in with an 18.2% gain—although a major component, China, was lagging. Market volatility dropped substantially from the elevated levels reached in March, although the BetaPro S&P 500 Volatility ETF (HUV) declining by 29%. Still, equity market volatility remains well above historical averages. Fixed-income ETFs lagged during the quarter. The Vanguard International Bond ETF (BNDX) gained 2.0% while the iShares Canadian Government Bond ETF (XGB) added 4.8%. Note that overall, so far this year,…

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