Canada ETF Says “Thank You”

October 8th at 4:06pm by Tom Lydon

Canada_etf 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.

Ewc_etf_chart

For full disclosure, some of Tom Lydon’s clients own EWC.

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.

Tickers

EWC