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Canadian exchange traded funds are an alternative for investors and traders who want to gain exposure to the Canadian economy or the growth in specific sectors. With the current worldwide focus on the commodity sector, Canada has been experiencing an expansion due to the demand for resources and the high concentration of Canadian resource companies that grace the exchange listings. Canada ETF's are composed of a basket of stocks that represent a sector or asset class. Instead of being exposed to the movements of one particular stock, ETF's provide a way for investors to take a position in a basket of stocks. This can reduce downside risk associated with the adverse movement in one particular stock. Canada exchange
traded funds can be used to take long
positions, short positions and used as a hedge. They are bought and
sold the same way stock transactions take place. They can be purchased
on margin and unlike mutual funds, do not attract entrance or exit
fees. Traditionally, exchange traded funds are a cheaper structure to
run because they replicate a basket of stocks and asset classes and
only require minimal intervention to manage. The following
represents some Canadian ETF's: Claymore Oil Sands
Sector ETF (TSX:CLO) Top 10 Holdings: SUNCOR ENERGY INC.
(I/L):10.57 % iShares - MSCI
Canada Index (EWC) Royal Bank of
Canada: 5.92% Canadian Gold ETF: Ishares Canadian S&P/Tsa Gold Index(TOR:XGD) This ETF comprises
a basket of gold producing stocks
including: Canadian Energy ETF: ISHARES Canadian S&P/TSX CAPPED ENERGY This ETF holds a
basket of stocks comprising the energy,
oil and gas, producers, pipe line, service and drillers and comprise
companies such as Suncor Energy, Petro-Canada, TransCanada Corp, Encana
Corporation and Tailsman Energy. Next Article: Brazil ETF |
