Canada’s iShares MSCI Canada Index (EWC) exchange traded fund (ETF) has a lot for which to be thankful. First, it’s currently up 32.6% year-to-date. Secondly, the country’s unemployment rate is at a 33-year low and wages are rising at more than double the cost of living, reports Eric Beauchesne for The Vancouver Sun. It’s interesting to note that different areas in Canada are facing different experiences. For example, Western Canada is delighting in a red-hot resource-based economy while Central Canada is having a struggling manufacturing sector. Perhaps one of the reasons behind the weak manufacturing sector is the fact the Canadian loonie is worth as much as the dollar.
Central Canada’s slump in manufacturing is unusual as that sector is typically a strong performer as well as its mining sector. Canada is also known for its natural resources and skilled labor force. Exports account for about one-third of its GDP, according to the CIA World Factbook.
For full disclosure, some of Tom Lydon’s clients own EWC.