Tepid Response by Canada ETFs to Surprise Rate Cut

Regardless of central bank action, there are other headwinds facing Canada ETFs. For example, some market observers believe sustained oil weakness could trigger dividend cuts in the energy sector. [Dangerous Days for Canadian Energy Dividends]

Additionally, the Canadian banking sector is also implementing structural changes, such as moving resources out of higher-profit areas and pulling back on international expansions. Canadian financials also look expensive on valuation. EWC allocates 37.1% of its weight to the financial services sector while FCAN has a weight of 13.9% to that sector.

iShares MSCI Canada ETF