Canada's Equity Markets Look Primed for More Upside

Investors looking for opportunity with exchange traded funds tracking ex-US developed markets do not have to look far because Canada’s equity markets look primed for more upside. For example, the iShares MSCI Canada ETF (NYSEArca: EWC) is up 3.4%.

That is after a recent decline, one many market observers believe Canadian stocks will rebound from. Oil prices play into the equation because Canada is one of the world’s largest oil producers.

Canada’s oil production could either lift or weigh on the economy, depending on the energy market. Canada is one of the largest non-OPEC producers in the world.

EWC and Canadian stocks got a boost from the production cut announced earlier this month by the Organization of Petroleum Exporting Countries. OPEC plans to diminish output to a range of 32.5 to 33.0 million barrels per day from its current estimated output of 33.24 million barrels per day. While Saudi Arabia, OPEC’s biggest producer, has agreed to reduce output, Iran, Libya and Nigeria might not follow suit.

Other Canada ETFs include the First Trust Canada AlphaDEX Fund (NYSEArca: FCAN), SPDR MSCI Canada Quality Mix ETF (NYSEArca: QCAN) Guggenheim Canadian Energy Income Fund (NYSEArca: ENY) and the IndexIQ Canada Small Cap ETF (NYSEArca: CNDA).