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 7 ETFs are available. On the MSCI Canada index there are 7 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.33% p.a. and 0.48% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
MSCI Canada |
Canada | 7 ETFs | 91 (31/08/18) |
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 | |
|---|---|---|---|---|---|---|
| UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-disLU0446734872 | 1,218 | 0.33% p.a. | Distributing | Luxembourg | Full replication | |
| iShares MSCI Canada UCITS ETF (Acc)IE00B52SF786 | 664 | 0.48% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers MSCI Canada Index UCITS ETF 1CLU0476289540 | 243 | 0.35% p.a. | Accumulating | Luxembourg | Optimized sampling | |
| Lyxor Canada (S&P TSX 60) UCITS ETF D-EURLU0496786731 | 43 | 0.40% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF MSCI Canada UCITS ETFLU0950672807 | 31 | 0.33% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI Canada UCITS ETF USDIE00B51B7Z02 | 28 | 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 | 0.85% | -6.62% | -5.80% | -5.36% | 17.47% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Canada | -7.73% | 11.36% | 26.89% | -23.83% | 13.04% |
Source: justETF.com; As of 30/11/18; Calculations in CHF based on the largest ETF of the respective index.
The best Canada ETFs
by 1 year return
| 1 | Lyxor Canada (S&P TSX 60) UCITS ETF D-EUR | -4.24% |
| 2 | iShares MSCI Canada UCITS ETF (Acc) | -5.29% |
| 3 | Xtrackers MSCI Canada Index UCITS ETF 1C | -5.31% |
The cheapest Canada ETFs
by total expense ratio (TER)
| 1 | UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-dis | 0.33% p.a. |
| 2 | UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-UKdis | 0.33% p.a. |
| 3 | UBS ETF MSCI Canada UCITS ETF | 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 5,66% (as of 29/12/2017). 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: 5,66% (29/12/2017) |
2 ETFs | 717 (31/08/18) |
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 | 1,938 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| ComStage MSCI North America TRN UCITS ETFLU0392494992 | 199 | 0.25% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI North America | 2.65% | -2.23% | 2.06% | 5.93% | 32.37% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI North America | 5.91% | 15.68% | 14.19% | -0.50% | 24.41% |
Source: justETF.com; As of 30/11/18; Calculations in CHF based on the largest ETF of the respective index.