A striking and strong Canadian jobs report drove the currency to a new high, taking the exchange traded fund (ETF) with it. CurrencyShares Canadian Dollar Trust (FXC) rose Friday, up 1.9%. Wanfeng Zhou for Thomson Financial reports that this is the loftiest level since June 2006. Statistics show the economy created 63,000 jobs and this exceeded expectations by 12,000. The U.S. dollar is at 0.9367 Canadian dollars, down 1.5%. The unemployment rate fell to 5.8%, creating a bit of an obstacle for the Bank of Canada to cut rates.
So how do you enjoy this transformation happening north of our borders? iShares MSCI Canada Index Fund (EWC) has also benefited from global economic expansion, especially with its exposure to natural resources and industrial materials. With the Canadian dollar forging ahead, FXC offers a low-risk, world bond fund-type investment, according to Gary Gordon for ETFexpert. EWC is up 42.1% year-to-date, while FXC is up 29.1%.
For full disclosure, Tom Lydon’s clients own shares of EWC.
Read the disclosure, as Tom Lydon is a board member of Rydex funds.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.