Meet the ETF is turning in one of the year’s best performances so far
The iShares MSCI Canada ETF (EWC) is having a good year, with a gain of 17.6% so far in 2016, according to ETF Trends.
The gain – driven largely by rebounding oil prices – is a welcome change from 2015, when Canadian stocks and ETFs plunged as commodity prices fell and a weakening Canadian dollar sparked fears of a recession.
“For the first time since 2010, Canada was the top destination for U.S. investors in foreign exchange traded funds through the first half of the year,” Bloomberg reported. “The iShares MSCI Canada exchange-traded fund saw $786.1 million in net inflows in the year to June 30, according to data compiled by Bloomberg.”
Energy producers and metals have driven the resurgence in Canadian equities, according to Bloomberg. A gauge of raw-materials stock spiked 51% in the first half of 2016, “the best year-to-date performance for the measure in at least 30 years,” Bloomberg reported.
While some worry the oil rally might not last, others think it’s just getting started.
“Unlike last year, when commodity markets rallied through the second quarter only to fall sharply come the third as oversupply persisted, this rally looks more sustainable as physical markets have tightened considerably,” a Citigroup note stated. “Global demand continues to grow at a moderate rate while the pullback in capital spending is reducing not just supply growth but total supplies across nearly all extractive industries.”
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The gain – driven largely by rebounding oil prices – is a welcome change from 2015, when Canadian stocks and ETFs plunged as commodity prices fell and a weakening Canadian dollar sparked fears of a recession.
“For the first time since 2010, Canada was the top destination for U.S. investors in foreign exchange traded funds through the first half of the year,” Bloomberg reported. “The iShares MSCI Canada exchange-traded fund saw $786.1 million in net inflows in the year to June 30, according to data compiled by Bloomberg.”
Energy producers and metals have driven the resurgence in Canadian equities, according to Bloomberg. A gauge of raw-materials stock spiked 51% in the first half of 2016, “the best year-to-date performance for the measure in at least 30 years,” Bloomberg reported.
While some worry the oil rally might not last, others think it’s just getting started.
“Unlike last year, when commodity markets rallied through the second quarter only to fall sharply come the third as oversupply persisted, this rally looks more sustainable as physical markets have tightened considerably,” a Citigroup note stated. “Global demand continues to grow at a moderate rate while the pullback in capital spending is reducing not just supply growth but total supplies across nearly all extractive industries.”
Related stories:
Horizons ETFs provides access to global currency markets with new ETF
How ETFs can give insight on market risk appetite
