4 Reasons to Watch Canada ETFs | ETF Trends

Our neighbors to the north haven’t seen new highs in their exchange traded fund (ETF) for nearly three years. If things keep moving in the right direction, it may not be long before they do.

  • Although The Bank of Canada said economic growth probably slowed in the second quarter to about half the pace in the first three months of the year, the economy needs no extra stimulus. The news may slow the rate at which the Bank raises interest rates, at the most.
  • More than 85% of Canadian small and medium-sized businesses are ready to deploy cash for capital expenditures, or to at least maintain their current spending rate.Tim Kiladze for Globe and Mail reports that the small business has an affect over the economy in Canada and business confidence is rising in this country.
  • Alison Lampert for The Gazette reports that Canadian housing prices are rising faster in the resale home market than on new homes. Over the last decade, the average cost of a new home grew by just above 50%, while the average price of a resale home grew by more than 100%. [Why Our Northern Neighbors Are So Happy.]
  • The Wall Street Journal reports that Canada is doing well compared to other developed markets, and the country is punching above its world-wide economic weight class. The mix of fundamentals including job creation, economic growth, the stability of our financial sector, and relatively low public debt are helping the country maintain its economic health so far.

Theophilus Argitus and Alexandre Deslongchamps for BusinessWeek report that there has been one sour note: Statistics Canada said the country lost 9,300 jobs in July, the first decline this year, with the unemployment rate rising to 8% from 7.9%. [Expansion and Optimism Rule Canada.]

For more stories about Canada, visit our Canada category.

  • iShares MSCI Canada (NYSEArca: EWC)

  • IQ Canada Small-Cap ETF (NYSEArca: CNDA)

Canada ETFs

Tisha Guerrero contributed to this article.

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.