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.
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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV