How to invest in Canada using ETFs
How do I invest in Canadian stocks?
The easiest way to invest in the whole Canadian stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the Canadian stock market you find 1 index, which is tracked by ETFs.
Alternatively, you can invest in the North American stock market. Unfortunately, Canada is only weighted around 6%.
Performance of Canadian stocks (MSCI Canada)
Indices in comparison
The best indices for ETFs on Canada
For an investment in the Canadian stock market, 1 index tracked by 6 ETFs are available. On the MSCI Canada index there are 6 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.28% p.a. and 0.48% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
MSCI Canada |
Canada | 6 ETFs | 93 (31/10/16) |
The MSCI Canada index tracks the largest and most liquid Canadian stocks.
Index factsheet |
| ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Canada UCITS ETF (Acc)IE00B52SF786 | 714 | 0.48% p.a. | Accumulating | Ireland | Full replication | |
| db x-trackers MSCI Canada Index UCITS ETF (DR) 1CLU0476289540 | 320 | 0.35% p.a. | Accumulating | Luxembourg | Optimized sampling | |
| UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-disLU0446734872 | 308 | 0.33% p.a. | Distributing | Luxembourg | Full replication | |
| UBS ETF (IE) MSCI Canada SF UCITS ETF (CAD) A-accIE00B5TZCY80 | 39 | 0.28% p.a. | Accumulating | Ireland | Swap-based | |
| HSBC MSCI Canada UCITS ETF USDIE00B51B7Z02 | 32 | 0.35% p.a. | Distributing | Ireland | Full replication | |
| UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-UKdisLU1107559962 | 3 | 0.33% p.a. | Distributing | Luxembourg | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Canada | -2.26% | -5.29% | -2.74% | 6.44% | -1.86% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI Canada | -4.68% | 27.27% | -23.90% | 12.70% | 2.73% |
Source: justETF.com; As of 31/05/17; Calculations in CHF based on the largest ETF of the respective index.
The best Canada ETFs
by 1 year return
| 1 | UBS ETF (IE) MSCI Canada SF UCITS ETF (CAD) A-acc | 6.63% |
| 2 | UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-dis | 6.51% |
| 3 | iShares MSCI Canada UCITS ETF (Acc) | 6.44% |
The cheapest Canada ETFs
by total expense ratio (TER)
| 1 | UBS ETF (IE) MSCI Canada SF UCITS ETF (CAD) A-acc | 0.28% p.a. |
| 2 | UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-dis | 0.33% p.a. |
| 3 | UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-UKdis | 0.33% p.a. |
North American indices with a share of Canada
Besides Canadian ETFs you can consider ETFs on the North American stock market. In order to invest in North America there is 1 index, which is tracked by 2 ETFs. The MSCI North America Index contains Canadian companies with a weight of 5.75% (as of 31/10/2016). The total expense ratio (TER) of ETFs on North America is between 0.25% p.a. and 0.40% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI North America | North America
Canada: 5.75% (31/10/2016) |
2 ETFs | 710 (31/10/16) |
The MSCI North America index tracks stocks from developed North American countries (Canada and United States).
Index factsheet |
| ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI North America UCITS ETFIE00B14X4M10 | 2,017 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| ComStage MSCI North America TRN UCITS ETFLU0392494992 | 134 | 0.25% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI North America | -0.83% | -1.26% | 5.15% | 13.98% | 37.32% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI North America | 2.98% | 14.05% | -0.53% | 24.22% | 25.83% |
Source: justETF.com; As of 31/05/17; Calculations in CHF based on the largest ETF of the respective index.