The Canadian banking sector is also implementing structural changes, such as moving resources otu of higher-profit areas and pulling back on international expansions. Moreover, competitive pressures in retail banking are rising as economic growth slows. Consequently, Som Seif, chief executive of Purpose Investments Inc., argues that banks are acting more like utilities as it becomes harder to do business.

“The banks are getting tougher,” Seif said. “There is the potential for them to go lower, not higher.”

The Canada ETFs all include heavy exposure to financial and energy stocks. For instance, EWC includes 38.8% financials and 23.1% energy. FCAN holds 32.3% energy and 15.7% financials. Lastly QCAN has 33.4% financials and 21.9% energy.

iShares MSCI Canada ETF

For more information on Canada, visit our Canada category.

Max Chen contributed to this article.

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