When investors look for exciting investment destinations, countries like Malaysia, Peru and China often top their lists. Funds like the iShares MSCI Malaysia Index (NYSE:EWM) have surged as investors have looked towards the exotic to find gains. Still, as these emerging nations continue to grow, their demand for natural resources remains insatiable. Our often ignored neighbor to the North with its vast supply of natural resources, may make it just as an exciting proposition as Estonia.

Investopedia Markets: Explore the best one-stop source for financial news, quotes and insights.

Boasting the world's second largest oil reserves behind Saudi Arabia, Canada could be investors' developed ticket into emerging markets. The nation could almost be viewed as a commodities hyper-market, providing all the necessary ingredients that fast-growing countries in Asia and South America need to build infrastructure and support increased consumerism.

Major exports including oil, grains, industrial and precious metals are all set to increase. Analysts forecast a nearly 57% increase in Canadian exports to Asian-Pacific nations this year. Furthermore, while Canada is known for its energy and minerals resources including the rich oil sands of Alberta, the nation is also an agricultural superstar. (To learn more, see Canada's Commodity Currency: Oil And The Loonie)

The country is one of the world's largest producers and exporters of wheat, canola and fertilizer. As the planet continues to grip with food crunches and shortages, these agricultural exports will ultimately help boost Canada's bottom line.
For investors interested in adding some Canadian exposure into their portfolio, the iShares MSCI Canada Index ETF (ARCA:EWC) would be a nice straight forward choice.

For dividend investors, there are a number of Canadian companies that also yield dividends that are far more generous than EWC's 1.92%.

Company Dividend Yield Market Cap YTD Performance
Enerplus Corporation (NYSE:ERF) 9.10% 4.21B -9.54%
Pengrowth Energy Corporation (NYSE:PGH) 8.40% 3.63B -6.42%
Provident Energy Ltd. (NYSE:PVX) 4.50% 3.22B +22.50%
TransAlta Corp (NYSE:TAC) 6.00% 4.30B -8.00%

Bottom Line:
While not exotic, Canada's supply of rich natural resources and sound financial system makes it a sound investment destination. Likewise, those interested in another source of dividends may want to take a closer look as well.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Investing

    Time to Bring Active Back into a Portfolio?

    While stocks have rallied since the economic recovery in 2009, many active portfolio managers have struggled to deliver investor returns in excess.
  2. 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.
  3. Stock Analysis

    Allstate: How Being Boring Earns it Billions (ALL)

    A summary of what Allstate Insurance sells and whom it sells it to including recent mergers and acquisitions that have helped boost its bottom line.
  4. 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.
  5. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  6. 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.
  7. 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.
  8. 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.
  9. Investing Basics

    How to Deduct Your Stock Losses

    Held onto a stock for too long? Selling at a loss is never ideal, but it is possible to minimize the damage. Here's how.
  10. 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.
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>

You May Also Like

Trading Center