How To Invest In Canadian Stocks

Audio Length: 00:24:36

Welcome to Episode #5 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by John Blank, Zacks Chief Equity Strategist and the editor of the International Trader. John is Zacks’ expert on the global economy and international stocks.

One of the most frequent questions the Zacks strategists are asked is how to invest in Canada.

Tracey and John discuss the “easy” way to invest, which is simply by buying the iShares Canada ETF (EWC – ETF report). Is this a good strategy for investors?

It is heavily weighted in financials and energy. Shares are down big in 2015 due to the decline in oil prices and a stock sell off in a pharmaceutical company which was one of its largest holdings. But given the pullback, is now the time to buy in?

If you’re not going to buy the ETF, what individual Canadian stocks are there that investors can buy on the US exchanges?

While staying out of the energy and materials sectors, Tracey and John explore a handful of stocks including Agrium (AGU – Analyst Report), an agribusiness company based in Calgary, Brookfield Asset Management (BAM- Snapshot Report), a diversified real estate investment company headquartered in Toronto, and a couple of consumer stocks including lululemon (LULU – Analyst Report), the famous yoga athletic wear retailer, and Restaurant Brands (QSR – Snapshot Report), which owns Burger King and Tim Horton’s.

Despite these good quality names, Canada is still lagging in producing industry leaders in other sectors, including in technology. John shares his insights on what the Canadians need to do to diversify their economy and tap into the hot knowledge cities like Vancouver and Montreal that are brimming with talent.