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 2 indices, which are tracked by ETFs.

Alternatively, you can invest in the North American stock market. Unfortunately, Canada is only weighted around 6%.

0.28% p.a. - 0.48% p.a.
annual total expense ratio (TER) of Canada ETFs
on the Canadian stock market, which is tracked by ETFs
on the Canadian stock market
The best indices for Canada ETFs

Performance of Canadian stocks (MSCI Canada)

1 month: 9.83%
1 year: 27.07%
3 years: 27.87%
5 years: 40.42%

Indices in comparison

The best indices for ETFs on Canada

For an investment in the Canadian stock market, 2 indices tracked by 7 ETFs are available. On the MSCI Canada index there are 6 ETFs. On the S&P/TSX 60 index there is 1 ETF. 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

S&P/TSX 60

Canada 1 ETF 60
The S&P/TSX 60 index tracks Canadian large cap securities, listed on the Toronto stock exchange.
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI Canada UCITS ETFIE00B52SF786 687 0.48% p.a. Accumulating Ireland Full replication
UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-disLU0446734872 485 0.33% p.a. Distributing Luxembourg Full replication
db x-trackers MSCI Canada Index UCITS ETF (DR) 1CLU0476289540 140 0.35% p.a. Accumulating Luxembourg Optimized sampling
Lyxor Canada (S&P TSX 60) UCITS ETF D-EURLU0496786731 82 0.40% p.a. Distributing Luxembourg Unfunded swap
UBS ETF (IE) MSCI Canada SF UCITS ETF (CAD) A-accIE00B5TZCY80 44 0.28% p.a. Accumulating Ireland Swap-based
HSBC MSCI Canada UCITS ETF USDDE000A1JF7N6 33 0.35% p.a. Distributing Ireland Full replication
HSBC MSCI Canada UCITS ETF USDIE00B51B7Z02 33 0.35% p.a. Distributing Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
S&P/TSX 60 4.89% 6.55% 10.99% 12.88% 23.54%
MSCI Canada 4.81% 6.72% 11.25% 12.97% 21.89%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI Canada 25.10% -15.55% 15.06% 1.02% 6.88%
S&P/TSX 60 25.10% -14.54% 16.32% 0.64% 7.87%

Source: justETF.com; As of 30.11.16; Calculations in EUR based on the largest ETF of the respective index.

 
Alternative investment opportunities

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 EUR
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI North America UCITS ETFIE00B14X4M10 1,924 0.40% p.a. Distributing Ireland Optimized sampling
ComStage MSCI North America TRN UCITS ETFLU0392494992 116 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 6.26% 6.45% 10.32% 6.60% 58.15%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI North America 11.54% 10.41% 26.84% 23.71% 12.47%

Source: justETF.com; As of 30.11.16; Calculations in EUR based on the largest ETF of the respective index.