Vanguard is reaching out to Canada to be the first broad based international exchange traded fund (ETF) to allocate 5% of its assets to the North American country. The FTSE All- World ex-USA Index Fund gives exposure to more than 2,000 large and mid-cap stocks from 48 countries in developed and emerging markets. Before this ETF, investors in the U.S. used the iShares MSCI EAFE (EFA) with an ETF that tracked the S&P 500. Jen Ryan of TheStreet reports this was when the S&P still included a fair number of Canadian stocks, but they have since been removed, making the S&P a more pure U.S. play.
The Canadian stock market has risen around 90% in the past 3 years, catching investor’s interest. Keep in mind, the Canadian market isn’t without it’s risks. Greg Newton offers that Canadian investments are often a play on commodities.