NHL playoff hockey is in full swing and investors looking to capitalize on the birthplace of the sport may want to consider Canada ETFs for their portfolio.

Canada offers many attractive qualities for investors seeking exposure to North America, including plentiful natural resources, a sound economy, and welcoming business environment. Our neighbors to the north have a sound banking and financial system as well.

This plays to the strengths of investors looking to diversify their portfolio outside of the United States, but still access a developed and polished economy.

The iShares MSCI Canada ETF (NYSE: EWC) is the largest and most heavily traded ETF that tracks 96 large-cap Canadian stocks and controls over $3 billion in total assets. The largest holdings in EWC include The Royal Bank of Canada and TD Toronto Dominion.

Based on those top holdings, it’s not surprising the largest sector allocation in this ETF is financials, with a 36.58 percent weighting. This is followed closely by energy stocks, which make up 26.10 percent of the fund.

The overweight exposure to energy and financials has helped push EWC to new all-time highs in 2014. So far this year, EWC has gained 2.47 percent and bested many of the domestic equity indices such as the SPDR S&P 500 ETF (NYSE: SPY).

Another intriguing Canadian investment offering to consider is the First Trust Canada AlphaDEX Fund II (NYSE: FCAN). This ETF is based on a weighted strategy that selects stocks based on their recent momentum, cash flow, book value, and other key balance sheet strengths.

The end result is a portfolio of 40 stocks that are spread between large, mid, and small-cap companies. Financial and energy companies also make up the top sector holdings in FCAN as well.

The last ETF that deserves to be mentioned in this segment is the Guggenheim Canadian Energy Income ETF (NYSE: ENY). This fund takes a slightly different tact by allocating its portfolio solely to high income producing energy companies. This includes several Canadian oil sands and energy exploration stocks that are focused on oil and natural gas services.

The current trailing 12-month yield on ENY is 4.25 percent and the fund has gained more than 8 percent in 2014 on the back of a strong commodity price surge. Further upside in oil and natural gas prices would likely bode well for this unique sector ETF.

Related Articles
  1. Chart Advisor

    Now Could Be The Time To Buy IPOs

    There has been lots of hype around the IPO market lately. We'll take a look at whether now is the time to buy.
  2. Chart Advisor

    Copper Continues Its Descent

    Copper prices have been under pressure lately and based on these charts it doesn't seem that it will reverse any time soon.
  3. Mutual Funds & ETFs

    Buying Vanguard Mutual Funds Vs. ETFs

    Learn about the differences between Vanguard's mutual fund and ETF products, and discover which may be more appropriate for investors.
  4. Mutual Funds & ETFs

    ETFs Vs. Mutual Funds: Choosing For Your Retirement

    Learn about the difference between using mutual funds versus ETFs for retirement, including which investment strategies and goals are best served by each.
  5. Mutual Funds & ETFs

    How to Reinvest Dividends from ETFs

    Learn about reinvesting ETF dividends, including the benefits and drawbacks of dividend reinvestment plans (DRIPs) and manual reinvestment.
  6. Mutual Funds & ETFs

    Best 3 Vanguard Funds that Track the Top 500 Companies

    Discover the three Vanguard funds tracking the S&P 500 Index, and learn about the characteristics and historical statistics of these funds.
  7. Forex Fundamentals

    How to Buy Chinese Yuan

    Discover the different options that are available to investors who want to obtain exposure to the Chinese yuan, including ETFs and ETNs.
  8. Mutual Funds & ETFs

    ETF Fees: Why BlackRock is the Latest to Cut Them

    Low expense ratios are a big selling point for ETFs, but are they being focused on too much?
  9. Chart Advisor

    Is This The Beginning Of A Downtrend In Home Builders?

    Falling lumber prices and weakness on the charts of home builders suggest that the next leg of the trend could be downward.
  10. Investing

    The Semiconductor Sector is On the Verge of a Breakout

    The semiconductor sector may be on the verge of a major breakout that provides market leadership in 2016.
  1. Is Canada a developed country?

    Canada is a developed country. Countries that are considered to have developed economies exhibit strength in typical economic ... Read Full Answer >>
  2. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  3. Are Canadian Pension Plans inflation-protected?

    The Canada Pension Plan protects pension holdings against inflation and adjusts its annual rates for inflation. The Canada ... Read Full Answer >>
  4. Are tax shelters legal in Canada?

    Most tax shelters are legal in Canada. However, there have been illegal tax shelter scams that the Canada Revenue Agency ... Read Full Answer >>
  5. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  6. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>

You May Also Like

Trading Center