RE:XRE VERSUS XIU Yep. And XFN (CdN banks) not much better - down 17% YTD.
Shopify up 147% YTD and now largest weight in the TSX 60 at 8.5 percent. $150 billion market cap versus $2 billion in forecast revenue, $24 million (yes that is million) in forecast EBITDA and negative $86 million FCF forecasted.
The chase for performance into Shopify and US tech stocks has orphaned many CDN stocks.
some of the banks, pipelines and REITs have blemishes , but a number have solid yields (ranging from 5-10 percent) and trade below book. It may be frustrating, but grabbing an Enbridge under $40 (8 percent yield) or riocan under $15 or BMO under $70, just to name a few, seems like rational value-creating advice here.
The Bank of Canada has been swallowing up bonds (primarily mortgage bonds) and won't let the cdn real estate sector go upside down, so there is also quiet governmental support for bank balance sheets and normalcy in the real estate market despite the pandemic. Good for REITs refinancing debt and mortgaging properties at decent rates.
money will repatriate back into these laggards. It always has historically . Just need some patience. Laggards like Riocan and others test my patience , but at least there is underlying value rather than cookoo for cocoa puffs valuations at Shopify...good luck.