4-Star ETFs Poised to Pop: iShares MSCI Canada

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares MSCI Canada Index ETF (NYS: EWC) has earned a respected four-star ranking.

With that in mind, let's take a closer look at iShares MSCI Canada and see what CAPS investors are saying about the ETF right now.

EWC facts


March 1996

Total Net Assets

$4.62 billion

Investment Approach

Seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Canadian equity market.

Expense Ratio


Dividend Yield


1-Year / 3-Year / 5-Year Annualized Returns

(12%) / 3.1% / 2.5%

Best YTD Performers Among Top 10 Holdings

Canadian National Railway (NYS: CNI)

Bank of Montreal (NYS: BMO)

Royal Bank of Canada (NYS: RY)

Foreign Large-Cap ETF Alternatives

iShares MSCI Value Index (NYS: EFV)

iShares Dow Jones International Select Dividend Index (NYS: IDV)

Source: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 412 members who have rated EWC believe the ETF will outperform the S&P 500 going forward. These bulls include Masaladosai and TheMightyKhan.

A few months ago, Masaladosai nicely summed up the EWC bull case:

Canada has not turned on the printing press to print money and rich in natural resources of all kinds. ... Not aware of single Canadian bank that went bankrupt during the financial crisis. This ETF well represents the Canadian industry.

EWC even sports a low annual turnover ratio of 6%. That's much lower than that of other foreign large-cap ETF plays such as iShares MSCI Value Index (29%) and iShares Dow Jones International Dividend Index (38%).

CAPS member TheMightyKhan expands on the outperform argument:

Canada is a major exporter to the USA. I would venture to say their economy would be non existent without us buying their exports. Their currency is strong and likely to continue gaining against the dollar as long as the printing presses are churning out dollars at home. This will juice returns. I remember when a dollar US got you $1.65 Canadian.

What do you think about iShares MSCI Canada, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track theiShares MSCI Canada Index?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Canadian National Railway. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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