Looking at the chart of EWC – the ishare ETF for Canada – one can see that over the past 10 years its performance was very similar to the S&P 500. This comes as a surprise since if you look at the holding of each it is very different.
EWC mainly has a mix of banks, rail and enery among its top 10 holdings. On the other hand, the SPY’s top holdings are mainly technology companies including: Microsoft, Apple, Google, Tesla, Nvidia and Amazon.
Nevertheless, as the saying go when the US economy is going well so is the Canadian economy. The Bank of Canada in January chose to keep interest rates unchanged. Not a surprise here since the Fed on the US side did the same earlier in the same month.
One noteable difference between the two ETFs are the average volume of each. The EWC has an average volume sitting at about 2 million while for the SPY it is 77 million shares a day.
Looking at the current six months chart, despite the fact that EWC is trading sideways, the longterm signal still sits at a Buy for this ETF.
