The strong performance of the MSCI Canada Index, which has risen 15.5% so far this year, has been a boon to exchange-traded funds tracking the country’s equities.
While many stock markets around the world have suffered the effects of Brexit, the Toronto stock exchange has managed to dodge most of the negative effects, according to etfstrategy.com, with the MSCI Canada Index’s 15.5% rise dwarfing the 1.6% rise from the MSCI All Countries World Index.
Rebounds in gold, oil and copper prices have helped the Canadian market, according to etfstrategy.com.
“If you look at those three sectors – financials, energy and materials – they have done extremely well,” Raman Aylur Subramanian, head of equity applied research for at MSCI for the Americas, told City AM. “Looking at materials, there are a lot of gold companies in Canada which have had a phenomenal run this year.”
Six ETFs in Europe track Canadian equities, according to etfstrategy.com. Returns from all six are in the black so far, with the best performing being the iShares MSCI Canada UCITS ETF and the UBS MSCI Canada SF UCITS ETF, both of which are up more than 31% year to date in sterling terms.
The euro-based ETFs are also giving positive returns so far, but at only around half the rate of the sterling-based ETFs. The db X-trackers MSCI Canada TRN Index UCITS ETF is up about 12.3% year to date, according to etfstrategy.com. Meanwhile, the Lyxor Canada S&P TSX 60 UCITS ETF is up more than 13%.
Oil ETFs plagued by oversupply concerns
Pound ETF volatility to continue in medium-term