EWC VS HEWC: A Comprehensive Comparison of ETFs
Canada's robust economy and resource-rich landscape make it an intriguing target for investors worldwide. This article will contrast two ETFs, EWC (iShares MSCI Canada ETF) and HEWC (iShares Currency Hedged MSCI Canada ETF), focusing on their tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
EWC > HEWC: Overview
Both EWC and HEWC target the Canadian market but offer varied investment experiences. EWC concentrates on large and mid-sized companies, while HEWC offers similar exposure but hedges against the Canadian dollar's fluctuations. These differences can have a significant impact on your returns and risks.
EWC > HEWC: Issuers and Investment Goals
EWC is a product of BlackRock’s iShares and aims to mirror the MSCI Canada Custom Capped Index. HEWC, also from iShares, has a similar tracking objective but includes currency hedging to reduce foreign exchange risk. Knowing the issuers and their distinct objectives can help you tailor your investment strategy.
EWC overlap EWC VS HEWC: A Comprehensive Comparison of ETFs
EWC > HEWC: Sector Allocation and Top Holdings
EWC is heavily weighted towards Financials, Energy, and Materials with top holdings including major banks like Royal Bank of Canada and Toronto-Dominion Bank. HEWC, while also favoring these sectors, offers an additional layer of currency risk mitigation. Understanding these sectoral exposures and top holdings can guide you in aligning your investment choices with your risk tolerance and financial goals.
EWC > HEWC: Capitalization and Assets Under Management (AUM)
EWC, being more established, generally enjoys a higher AUM, reflecting its broader market acceptance. HEWC, although smaller in terms of AUM, attracts a niche market of investors looking to mitigate currency risk. The AUM and capitalization differences between these ETFs can provide insights into their liquidity and market interest.
EWC > HEWC: Strategy and Tracking Methods
EWC employs a passive management strategy, aiming to closely replicate its benchmark index for a comprehensive exposure to the Canadian market. HEWC follows a similar passive strategy but incorporates currency hedging to protect against adverse currency movements. These different tracking methods and strategies can be pivotal in making an informed investment decision.
EWC > HEWC: Exposure and Risk Profile
While both ETFs provide exposure to the Canadian market, HEWC comes with the added advantage of currency risk hedging. This means that HEWC can be a better option for those wary of currency fluctuations affecting their investments. The level of exposure and associated risks in each of these ETFs should be carefully considered before making any investment decisions.
Conclusion
Whether you are looking for broad market exposure through EWC or want to mitigate currency risks with HEWC, both ETFs offer distinct pathways into the Canadian investment landscape. For those keen to delve deeper into their holdings, correlations, and overlaps, the ETF Insider app is an invaluable tool. Its user-friendly interface provides a wealth of insights into these and other financial instruments.
Disclaimer: This article does not provide any investment advisory services.
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