Know the ETF options in Canada
ETF is Exchange Traded Fund. In simple terms; it is index based investment. Each ETF tries to matches the performance of a particular index that it tracks. Talking about ETF options in US, we know there are many options for it. But if you want to know the ETF options in Canada, then this article is really useful to you. There are some really attractive Exchange Traded Fund options for anyone who would like to invest. Whatever your aim is, whether you want exposure to Canada economy, wish to diversify your portfolio, want to try some Canadian risk or any other reason; there are various choices for you.
You may also look for good stocks to invest in by investigating in the Canadian market, investing in ETF would be quite easy. By investing in Exchange Traded Fund, one gets tax advantages, lower fees and simplicity too. One transaction done and you get exposure to many industries and companies in Canada instantly.
However it is always advisable to check yourself and then decide where you want to invest. So it is better you yourself decide which Exchange Traded Fund, would you like to invest. Carry on a research and decide by yourself which ETF is best for you. Below are some choices that you can rely on. Go through them and decide which one to invest for:
• CNDA – IQ Canada Small Cap ETF
The IQ Canada Small Cap ETF attempts to find the performance of the IQ Canada Small Cap Index. The market cap weighted Index attempts to provide investors with tracking of performance of small cap and small business Canadian Companies.
• DBCN – DBX MSCI Canada Currency Hedged Fund
This ETFs main target is investment result. This results corresponds to the performance of the MSCI Canada US Dollar Hedged Index
• ENY – Claymore / SWM Canadian Energy Income ETF
ENY, that is, The Guggenheim Canadian Energy Income ETF, mainly targets the investment result of the S&P/ TSX Canadian High Income Energy Index.
• EWC – iShares MSCI Canada Index ETF
This ETF mainly targets the investment results of an index made of Canadian equities. With this Exchange Traded Fund, investors get exposure to mid-sized and large companies in the Canada that target access to 85% of Canadian stock market.
• FCAN – First Trust Canada Alpha Dex Fund
This is particularly exchange traded fund. The main target of this fund is to find the investment results of equity index known as the NASDAQ Alpha DEX Canada Index.
• FXC – Currency Shares Canadian Dollar Trust ETF
This particular Exchange Traded Fund is designed to keep record of the price of Canadian Dollar.
So this list will be helpful to you to decide which ETF to invest in depending on your planned strategy.
List of Canada ETFs that are closed down
There are few ETFs that are no longer working. These are: CNPF – Global X Canada Preferred ETF, CAD – Pimco Canada Bond Index Fund, EWCS – iShares MSCI Canada Small Cap, HEWC – iShares Currency Hedged MSCI Canada ETF.
So now you have quite a god knowledge regarding various Exchange Traded Funds. So if you wish to invest in anyone of them, research about them nicely. You should also understand this thing completely and in different market conditions how do they react. You should also investigate about the risks that are linked with each Exchange Traded Funds.
Do not forget to consult your broker, financial advisor or ETF providers for any kind of queries. Once you are satisfied with your investigation and are sure about everything, go ahead and start trading.