Global X, the New York-based exchange-traded product firm known for its niche commodities and emerging markets strategies, launched a Canada equity fund that's focused only on the energy and commodities industries.
The Global X S&P/TSX Venture 30 Canada ETF (NYSEArca:TSXV) is based on an index of 30 of the most liquid companies. About 54 percent of the fund's holdings are focused on materials and the other 45 percent targets energy firms, according to information posted on the company's website. The fund has an annual expense ratio of 0.75 percent.
The fund places heavy emphasis on Canada's strengths as one of the world's most resource-intensive economies. By comparison, the iShares MSCI Canada Index Fund (NYSEArca:EWC) has holdings in energy and materials of about 28 percent and 22 percent, respectively, iShares said on its website. The iShares fund, which has more than $5.5 billion in assets, is also cheaper, at 0.53 percent.
Canada has loomed largely in the past several years as a supplier of everything from timber to gold to crude oil, feeding demand from countries around the world, particularly those in the rapidly growing emerging markets.
Canada hasn't suffered as much as other countries in the developed world following the market crash of 2008-2009-partly because of its resource-intensive economy, and also because it avoided the worst of the real estate bust that precipitated the Great Recession.
Another exchange-traded fund focused on Canada is the IndexIQ Canada Small Cap ETF (NYSEArca:CNDA), with half the portfolio focused on materials and 20 percent on energy. CNDA has an annual expense ratio of 0.69 percent.
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