The CurrencyShares Canadian Dollar Trust (NYSE: FXC). FXC, which tracks the movements of the loonie against the U.S. dollar, has also recently been solid among developed market currency ETFs.
“The Loonie has slumped for years. Ever since the end of the last gold bull market. That’s not a coincidence. Mining is VERY important to the Canadian economy,” according to ETF Daily News. “In fact, mining accounts for 19% of Canada’s total exports. Canada ranks in the top five countries in the global production of potash, uranium, nickel, cobalt, aluminum, platinum, sulphur, tungsten, diamonds, graphite, gold and more!”
The $3.2 billion EWC, the largest Canada ETF trading in the U.S., allocates about a third of its combined weight to energy and materials stocks. Financial services names represent 42.3% of the ETF’s weight.
Canada’s GDP is growing faster than that of the U.S. and at a solid rate for a large developed market.
“Canada is growing at around 2.6% to 3%, according to the Bank of Canada. The U.S. is growing at around 1.9%, after 1.6% last year. And some forecasters put U.S. growth lower,” according to ETF Daily News.