Canadian ETFs

Canadian ETFs

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Canadian ETFs

Canadian ETFs are one of the important way seek exposure to foreign markets to diversify the portfolio. Canadian Markets are given its proximity and close ties to the US makes it an investment that is easy to understand. However, this also means that you may end up getting less of a diversification benefit from it.

There are three simple ways to invest in the Canadian Stock Market using Canadian ETFs.

The first among them is using Barclays iShares offering, EWC, which attempts to match the performance of the MCSI Canada Index.

The second method is to use Barclay's iShares offerings that trade on the Toronto Stock Exchange. These are truly Canadian-based offerings that offer a little more flexibility from the EWC which is mentioned above.

Another company, Claymore Investments which is a Canadian subsidiary of the Claymore Group out of Chicago is working on brings fundamental indexes to Canada.

There are only a few available Exchange Traded Funds that are based on Canadian stock market indexes. The following ETFs that are managed by Barclay's Global Investors Canada but which trade like stocks on the Toronto Stock Exchange (TSX) and which can be purchased just like any other stock through any broker including discount on-line brokers.

iShares CDN LargeCap 60 Index Fund (TSX - XIU) : The iShares CDN LargeCap 60 Index Fund seeks to provide long-term capital growth by generally replicating the performance of the S&P/TSX 60 Index through investments in the constituent issuers of such index. The Index is comprised of 60 of the largest (by market capitalization) and most liquid securities listed on the TSX, selected by S&P using its industrial classifications and guidelines for evaluating capitalization, liquidity and fundamentals.

iShares CDN Growth Index Fund (TSX - XCG) : The iShares CDN Growth Index Fund seeks to provide long-term capital growth by generally replicating the performance of the Dow Jones Canada Select Growth Index. The Index is comprised of securities of Canadian issuers selected by Dow Jones & Company, Inc. based on criteria for identifying companies that demonstrate growth characteristics.

iShares CDN MidCap Index Fund (TSX - XMD) : The iShares CDN MidCap Index Fund seeks to provide long-term capital growth by generally replicating the performance of the S&P/TSX Completion Index through investments in the constituent issuers of such index. The Index is comprised of securities that, on the basis of market capitalization, make up the mid and smaller tier of the Canadian issuers listed on the TSX, selected by S&P using its industrial classifications and guidelines for evaluating capitalization, liquidity and fundamentals.

iShares CDN Gold Sector Index Fund (TSX - XGD) : The iShares CDN Gold Sector Index Fund seeks to provide long-term capital growth by generally replicating the performance of the S&P/TSX Global Gold Index through investments in the constituent issuers of such index. The Index is comprised of securities of global gold sector issuers selected by S&P using its industrial classifications and guidelines for evaluating capitalization, liquidity and fundamentals.

iShares CDN Energy Sector Index Fund (TSX - XEG) : The iShares CDN Energy Sector Index Fund seeks to provide long-term capital growth by generally replicating the performance of the S&P/TSX Capped Energy Index through investments in the constituent issuers of such index. The Index is comprised of securities of Canadian energy sector issuers listed on the TSX, selected by S&P using its industrial classifications and guidelines for evaluating capitalization, liquidity and fundamentals.

iShares CDN Financial Sector Index Fund (TSX - XFN) : The iShares CDN Financial Sector Index Fund seeks to provide long-term capital growth by generally replicating the performance of the S&P/TSX Capped Financials Index through investments in the constituent issuers of such index. The Index is comprised of securities of Canadian financial sector issuers listed on the TSX, selected by S&P using its industrial classifications and guidelines for evaluating capitalization, liquidity and fundamentals.

iShares CDN Income Trust Sector Index Fund (TSX - XTR) : The iShares CDN Income Trust Sector Index Fund seeks to provide long-term capital growth by generally replicating the performance of the S&P/TSX Capped Income Trust Index through investments in the constituent issuers of such index. The Index is comprised of the securities of Canadian income trust issuers listed on the TSX, selected by S&P using its industrial classifications and guidelines for evaluating capitalization, liquidity and fundamentals.