On Tuesday, two new members will be joining the fast growing exchange traded fund (ETF) family. IndexIQ is launching two new ETFs – one is targeting Canada’s small-cap companies and the other is targeting Australia’s small-cap companies.
Canada. Canada’s growth could be supported by small-caps, buoyed by strong global demand for energy. The country is rich in natural resources with 29 billion barrels of conventional oil reserves and 151 billion barrels of oil sands reserve, totaling 180 billion barrels, or second only to Saudi Arabia. Canada is also a net exporter of oil and natural gas – it produces more than it consumes. [ETF Spotlight: EWC.]
Canada has the second-largest proven crude reserves globally, and it’s the second-largest exporter of natural gas globally and the fourth-largest exporter of crude oil globally.
IQ Canada Small Cap ETF (NYSE Arca: CNDA). CNDA tries to reflect the performance of the IQ Canada Small Cap Index, which seeks to provide investor with the means to track the overall performance of small-cap Canadian firms. The fund has 100 holdings and has an expense ratio of 0.69%.
Half the fund is made up of materials, followed by energy (18.8%), financials (6.5%) and industrials (5.7%).