This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dion's Weekly ETF Blog Wrap

Stocks in this article: VNM URA EWC SPY


Banking on Canada

Published 5/23/2011 12:53 p.m. EDT

As Canadians take a break for Victory Day today, U.S. investors are growing increasingly nervous about debt problems overseas. European downgrades and fears are once again dominating the headlines, causing many investors to stick to the sidelines.

Today's a good day to look abroad, however, and to not limit your sights to Europe. Our neighbors to the North might be kicking back today, but upcoming Canadian earnings and ongoing Canadian strength continue to make the iShares MSCI Canada Index Fund (EWC) a potentially potent investment.

EWC, one of the largest and most well-known Canada-based equity ETFs, gained more than 1.5% last week, while the SPDR S&P 500 ETF Trust (SPY) finished the same period in negative territory. While most readers are already aware of Canada's abundant natural resources, another plus for short-term EWC buyers is the fund's exposure to the Canadian financial sector.

In the next two weeks, Canada's six largest banks -- Royal Bank of Canada (RY), Toronto-Dominion (TD), Canadian Imperial Bank of Commerce (CM), Bank of Montreal (BMO), National Bank of Canada and Bank of Nova Scotia (BNS) -- will be reporting earnings. All six of the aforementioned banks are included in EWC's underlying portfolio.

The recent appreciation of the Canadian dollar has certainly helped matters from the standpoint of EWC methodology. (EWC's currency exposure is unhedged.)

As our neighbors to the north celebrate the birthday of one of their most memorable queens, consider scooping up shares of EWC today as the fund gets dragged down, pinned to U.S. markets and projection. As Queen Victoria herself famously noted: "We are not interested in the possibilities of defeat. They do not exist."

At the time of publication, Dion Money Management had no positions in the stocks mentioned.

At the time of publication, Dion Money Management held no positions in the equities mentioned.
3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs