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