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
TheStreet Open House

Canadian ETF Beckons Investors

NEW YORK ( TheStreet) -- In the past, I have lauded Canada as an attractive destination for conservative investors looking for safe developed market exposure. Boasting a strong financial system and a relatively stable government, the Canadian markets have managed to hold up relatively well compared to troubled regions like the European Union.

Along with Latin America , our neighbor to the north could prove to be attractive as we gear up for the final weeks of this year. However as evidenced by the recent spattering of news, caution is still warranted for ETF investors hoping to venturing into this corner of the developed world

At the start of the week, investors received some disappointing news regarding the near-term prospects for Canada's economy. On Monday, the Organization for Economic Cooperation and Development announced that it had taken the axe to the nation's growth forecasts. The group pointed to easing growth in the U.S. and a strong Canadian dollar as being among the most glaring hurdles.

The mood towards Canada is not entirely glum. On the contrary, the OECD helped to ease some of the alarm resulting from its downward revision, mentioning that the expected 2.2% GDP expansion in Canada's economy in 2011 will still make it a top performer among the Group of Seven nations.

It will take time to determine whether Canada lives up to the predictions by the OECD. In the nearer term, I encourage investors to keep a close watch over the earnings calendar.

During the latter half of this week, investors will gain important insight into the state of the Canadian marketplace when a group of top banks, including Royal Bank of Canada (RY - Get Report), Toronto-Dominion Bank (TD - Get Report), Canadian Imperial Bank of Commerce (CM - Get Report) and Bank of Nova Scotia (BNS - Get Report) are scheduled to report earnings. The excitement will spill over into the first full week of December when the Bank of Montreal (BMO - Get Report) is expected to report its quarterly earnings numbers and outlook next Tuesday.

Many have expressed concerns that the firmness of the Canadian financial system has been tested by the deluge of troubling macroeconomic turbulence that has plagued the global markets in recent months. The Globe and Mail notes that while analysts have been quick to say that a repeat of 2008 is not in the cards, the outlook for this sector is cloudy as continued economic headwinds from regions like the EU remain a cause for concern.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
BMO $59.70 0.00%
BNS $49.52 0.00%
CM $72.18 0.00%
EWC $27.07 0.00%
RY $59.65 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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