Oh Canada: Energy Rally Lifts Country’s ETFs

Investors looking for deeper exposure to Canadian energy and mining names can consider the IndexIQ Canada Small Cap ETF (NYSEArca: CNDA), which allocates nearly 62% of its weight to those sectors. Like EWC, CNDA hit a new 52-week high today, confirming the ETF’s status as an ideal way for risk-tolerant investors to participate in resurgent Canadian resources names.

Although U.S. small-caps have struggled at various points this year, global small-caps have been strong and CNDA highlights that theme. The Canada small-cap offering is up more than 20% this year compared to a 3% gain for the iShares Russell 2000 ETF (NYSEArca: IWM). [Global Small-Cap ETFs Trounce U.S. Rivals]

The First Trust Canada AlphaDEX Fund (NYSEArca: FCAN) is something of an unheralded Canada ETF option, but the ETF does offer ample exposure to strong Canadian sectors. Financials, energy and materials combine for 55.6% of FCAN’s weight.

FCAN is another quiet success story from First Trust’s AlphaDEX suite. It is not a stretch to say few advisors and investors realize FCAN is a $145.5 million ETF and probably fewer know that almost $60 million of those assets have come into the fund just this year.

iShares MSCI Canada ETF

Tom Lydon’s clients own shares of IWM.