Canadian stock market
Is there an ETF listed on the ASX that gives exposure to the Canadian stock market TSX
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Answer
Hi David,
There are currently no ASX-listed ETFs dedicated specifically to Canadian equities, but Australian investors with US market access have several options.
- The three broad-market choices are the JPMorgan BetaBuilders Canada ETF (BBCA US), iShares MSCI Canada ETF (EWC US) and Franklin FTSE Canada ETF (FLCA US).
They provide broadly similar exposure to Canadian large and mid-cap stocks, with the main differences being fees, fund size and liquidity: BBCA charges 0.19%, EWC 0.50%, while FLCA is the cheapest at just 0.09%.
The underlying exposure will look relatively familiar to Australian investors. Canadian indices are heavily weighted toward financials (~40%), led by Royal Bank of Canada and Toronto-Dominion Bank, alongside sizeable energy (~17%) and materials (~15%) exposures. In many respects, buying Canada is therefore another way of gaining exposure to banks, oil and resources, albeit with a different commodity mix and economic backdrop to the ASX.
For investors specifically looking for broad Canadian exposure, BBCA offers an attractive combination of scale, cost and diversification, while FLCA stands out for its very low fee.
From a performance perspective over the last 3-years they’ve all returned +23% +/- 0.3% – we would probably plumb for the FCLA whose lower fees have made it the top performer.
