Thank rising oil prices for blowing away the notion, at least on a near-term basis, that Canadian and U.S. stocks are tightly correlated. Year-to-date, the iShares MSCI Canada Index (ETF) (NYSE: EWC) is up 12.7 percent, which is better than quadruple the returns of the S&P 500.
Indeed, the $2.75 billion EWC is sufficiently levered to the rebounding energy and materials trades. Those sectors are the second- and third-largest in EWC, combining for 32 percent of the ETF's weight. However, EWC and broader Canadian indexes could face some pressure courtesy of the country's financial services sector.
There are concerns about Canadian consumer credit as well as what is in store for the country's insurance providers following the ...
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