ETFs and Canada-A Welcome Addition
January 12th, 2007 at 1:45am by Tom Lydon
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.
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.