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. Chart Advisor

    3 Ways to Trade the Rising Volatility

    With volatility increasing in the markets, many are turning to these three volatility-capturing exchange-traded products.
  2. Mutual Funds & ETFs

    ETF Analysis: iShares US Basic Materials

    Learn about the iShares US Basic Materials exchange-traded fund, which invests in the equities of chemicals, metals and industrial gas companies.
  3. Mutual Funds & ETFs

    ETF Analysis: Ultra Oil & Gas

    Find out more about the ProShares Ultra Oil & Gas exchange-traded fund, the characteristics of the ETF and the suitability and recommendations for the fund.
  4. Mutual Funds & ETFs

    ETF Analysis: PowerShares DB Commodity Tracking

    Find out about the PowerShares DB Commodity Tracking ETF, and explore a detailed analysis of the fund that tracks 14 distinct commodities using futures contracts.
  5. Mutual Funds & ETFs

    ETF Analysis: PowerShares FTSE RAFI US 1000

    Find out about the PowerShares FTSE RAFI U.S. 1000 ETF, and explore detailed analysis of the fund that invests in undervalued stocks.
  6. Mutual Funds & ETFs

    Comparing ETFs Vs. Mutual Funds For Tax Efficiency

    Explore a comparison of mutual funds and exchange-traded funds, or ETFs, and learn what makes ETFs a significantly more tax-efficient investment.
  7. Mutual Funds & ETFs

    ETF Analysis: Vanguard Small-Cap Value

    Find out about the Vanguard Small-Cap Value ETF, and explore detailed analysis of its characteristics, suitability, recommendations and historical statistics.
  8. Mutual Funds & ETFs

    ETF Analysis: Vanguard Intermediate-Term Corp Bd

    Learn about the Vanguard Intermediate-Term Corporate Bond ETF, and explore detailed analysis of the fund's characteristics, risks and historical statistics.
  9. Insurance

    Whole or Term Life Insurance: Which Is Better?

    Learn the difference between term life insurance and whole life insurance. Understand when it is beneficial to buy each type of life insurance.
  10. Mutual Funds & ETFs

    ETF Analysis: iShares 10-20 Year Treasury Bond

    Learn about the iShares 1-20 Year Treasury Bond ETF and its holdings, and understand why investors may be better served to look at other bond funds.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
  4. Hard-To-Sell Asset

    An asset that is extremely difficult to dispose of either due ...
  5. Sucker Yield

    When an investor has essentially risked all of his capital for ...
  6. Lion economies

    A nickname given to Africa's growing economies.
RELATED FAQS
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  5. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  6. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!