Canadian ETF (EWC) Has Financials Too
September 26th 2006 at 8:05am by Tom Lydon
The iShares MSCI Canada (EWC) exchange traded fund and the Canadian economy are known for natural resources. As Murray Coleman of Investors Business Daily reports, energy prices are falling and there is concern about the Canadian economy and ETF. EWC is 8% off its high reached in May
What’s good for Canada is that GDP is growing 3.8% annually and they have been raising interest rates similar to the U.S. With a trade surplus, the Canadian dollar is more stable than the U.S. EWC not only includes material and energy markets, but also financials.
The positive aspect of Canada is that the financial sector is fairly diversified. And globally, financial services are holding up relatively well. The two biggest holdings in the ETF are Royal Bank of Canada (RY) and Manulife Financial Corp (MFC).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.