This Day On The Street
Continue to site right-arrow
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!

Canada ETFs Showing Promise

Stocks in this article: EWC BNS CM TD POT ENY

NEW YORK ( TheStreet) -- This week will be a busy one for the Canadian financial industry as institutions such as Canadian Imperial Bank of Commerce (CM) and Toronto-Dominion (TD) step up to the plate to report their quarterly earnings numbers. Already, investors have received ample insight into the state of this sector; on Tuesday morning, Bank of Nova Scotia (BNS) released estimate-beating numbers. Among the positive stats highlighted in this report was an 18% increase in third-quarter profits.

The Wall Street Journal points out that prior to this week, Royal Bank of Canada (RY), Bank of Montreal (BMO) and National Bank of Canada had released their own quarterly performance reports.

In the past, I have highlighted iShares MSCI Canada Index Fund (EWC) as being an attractive option for investors looking for a safe way to add some international exposure to a well-balanced portfolio. Although macroeconomic turmoil facing much of the developed world including the U.S. and EU has weighed heavily on confidence over the past month, Canada has managed to buck the trend and stand out as a beacon of strength.

In response, the EWC has witnessed relative stability. In the face of daunting adversity the fund managed to ascend in both our short and long term momentum rankings.

Although it is structured to track the broad Canadian markets, EWC dedicates its largest sector slice to the financials. This region accounts for nearly one-third of the fund's total assets.

While, from an earnings perspective, the next few days will likely prove exciting for EWC, promising strength could be in store for our Northern neighbor over a longer time frame as well. Therefore beyond this week, I encourage investors to continue to keep EWC and other Canada-focused ETFs on the watch list.

Boasting ample energy and natural resource reserves, Canada is an important player in the global commodities industry. In the past, the nation's Minister of Finance, Jim Flaherty has boldly identified Canada as an, "emerging energy superpower."

Canada appears to be in a strong position to benefit when macro turmoil eventually subsides and global markets regain their footing and return to the healing path. Taking the nation's expansive resources into consideration, EWC allocates nearly 50% of its portfolio across the energy and materials sectors. Companies including Suncor Energy (SU) and Potash of Saskatchewan (POT) can be found among the fund's top ten positions.

1 of 2

Select the service that is right for you!

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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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