Financial markets at a glance – December 31, 2021

FINANCIAL MARKETS
AT A GLANCE

DECEMBER 31, 2021

Canadian and U.S. equity sectors were mostly positive with a few notable exceptions. We saw a flattening of
the yield curve. As a result, government bonds outperformed corporate bonds, and subsequently longer term
bonds outperformed short term bonds. Here are the financial markets at a glance.

CANADIAN EQUITIES

US EQUITIES

Sector
9 of the 11 Canadian equity sectors ended the quarter in positive territory. Here are the best and worst performing sectors relative to last quarter.

Sector
10 of the 11 U.S. equity sectors ended the quarter
in positive territory. Here are the best and worst
performing sectors relative to last quarter.

WORST PERFORMERS

BEST PERFORMERS

Energy

Materials

Financials

14.2%

10.7%

9.4%

Communications

Services

Information
Technology

Healthcare

4.1%

-3.5%

-20.8%

Real Estate

Information 

Technology

17.2%

16.3%

Financials

4.3%

-0.3%

Company size performance comparison 
Though small and medium companies were positive over the quarter, they underperformed large-sized companies.

Company size performance comparison 
Though small companies were positive over the quarter, they underperformed medium and large-sized companies.

What’s working/What’s not working

From a style perspective, both value and growth
were positive but growth underperformed the
index.
Quality and minimum volatility were the
top performing factors this quarter, while
momentum trailed last.

What’s working/What’s not working

Growth outperformed value this quarter, but
both underperformed the index.
Quality was the only factor to outperform the
broader market, with momentum being the
weakest over the quarter, but still positive.

GLOBAL EQUITIES

FIXED INCOME

Regional 
 

Company size performance comparison 
Global small companies were positive but were
outpaced by large companies over the quarter.

Small Companies
Large Companies

What’s working/What’s not working

From a style perspective, growth outperformed
value and the MSCI World Index.
Quality was the only factor that outperformed
the index. Momentum, despite a 5.5% gain
underperformed the broader market.

We saw a flattening of the yield curve this quarter,
with yields in the middle and long end moving
lower, while short-term bond yields rose. 

Bond performance 

   Bond yield 

Bond yields were mixed with shorter date bond yields increasing while longer date bonds fell over the quarter.

Yield on the Canada 2-year rose from 0.53% to 0.95%.
Canada 5-year rose from 1.11% to 1.25%.
Canada 10-year fell from 1.51% to 1.42%.
Canada long bond fell from 1.98% to 1.68%.

Source: Morningstar Research Inc. as of December 31, 2021. © 2022 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 

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March 2022