EWC VS FXC: A Comprehensive Comparison of ETFs
Investing in Canada has become increasingly attractive due to the country's stable economy, natural resources, and diversified sectors. In this article, we will scrutinize two Canadian-focused ETFs: EWC (iShares MSCI Canada ETF) and FXC (Invesco CurrencyShares Canadian Dollar Trust). We will explore their tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
EWC > FXC: Overview
EWC and FXC serve as investment channels into Canada but in different capacities. While EWC provides exposure to large and mid-sized companies in Canada, FXC offers a way to invest in the Canadian dollar. These divergent focuses offer investors a range of options for entering the Canadian market.
EWC > FXC: Issuers and Strategic Objectives
EWC is a product of BlackRock’s iShares, a well-known ETF issuer, and aims to track the investment results of the MSCI Canada Custom Capped Index. On the other hand, FXC is managed by Invesco and is designed to track the price of the Canadian dollar. The issuers and their distinct objectives underline the unique features of each ETF.
EWC overlap EWC VS FXC: A Comprehensive Comparison of ETFs
EWC > FXC: Sectors and Top Holdings
EWC is largely invested in the Financials, Energy, and Materials sectors, with top holdings including companies like Royal Bank of Canada and Toronto-Dominion Bank. FXC, being a currency ETF, holds Canadian dollars and short-term Canadian government debt. Knowing the sectors and top holdings is crucial for investors to tailor their portfolios according to specific risk profiles and investment goals.
EWC > FXC: Capitalization and Asset Under Management (AUM)
EWC, focusing on equities, often boasts a high AUM, attracting both retail and institutional investors. FXC, being a more specialized ETF, has a moderate AUM and attracts a different kind of investor, mainly those looking to hedge against currency risks. The difference in capitalization and AUM between these two ETFs offers a variety of liquidity and risk options.
EWC > FXC: Tracking and Exposure
EWC uses a passive investment strategy to mirror the MSCI Canada Custom Capped Index, offering investors exposure to the Canadian equity market. FXC, however, tracks the value of the Canadian dollar against the U.S. dollar, offering currency exposure. Understanding how each ETF tracks its respective index can provide insights into their potential risks and returns.
Conclusion
Whether you are drawn to the Canadian equity market or looking to capitalize on currency movements, both EWC and FXC offer distinct avenues for investment. For a deeper dive into ETF specifics like holdings, correlations, and overlaps, ETF Insider is the ultimate tool. Its user-friendly app interface provides all these insights and more, making it an indispensable resource for savvy investors.
Disclaimer: This article does not provide any investment advisory services.
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