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EWC - ETF AI Analysis

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EWC

iShares MSCI Canada ETF (EWC)

Rating:74Outperform
Price Target:
EWC, the iShares MSCI Canada ETF, earns a solid overall rating driven largely by strong Canadian leaders like Royal Bank of Canada, Shopify, Agnico Eagle, and Canadian Natural, which show healthy financial performance, positive earnings call sentiment, and generally supportive technical trends. However, the fund includes some holdings such as Enbridge and Brookfield that face headwinds from high leverage and valuation concerns, and the ETF is heavily concentrated in a single country (Canada), which increases its exposure to local economic and sector-specific risks.
Positive Factors
Large, Established Asset Base
The fund manages a sizable pool of assets, suggesting it is widely used and offers good trading liquidity for investors.
Recent Performance Momentum
The ETF has shown steady gains over the past month and quarter, indicating improving short-term performance.
Support from Select Strong Holdings
Some key positions in materials and financials have delivered strong results, helping offset weaker names in the portfolio.
Negative Factors
High Sector Concentration in Financials
A large share of the fund is invested in financial companies, which increases the impact if that sector struggles.
Several Top Holdings Are Lagging
Some of the biggest positions, including major banks and a leading technology stock, have shown weak year-to-date performance, which can drag on overall returns.
Above-Average Expense Ratio
The fund’s fee level is relatively high for a broad country ETF, which can slowly reduce investors’ net returns over time.

EWC vs. SPDR S&P 500 ETF (SPY)

EWC Summary

The iShares MSCI Canada ETF (EWC) is a fund that aims to track the MSCI Canada Index, giving you broad exposure to the Canadian stock market in a single investment. It holds many of Canada’s largest companies across sectors like banks, energy, and materials. Well-known holdings include Royal Bank of Canada and Shopify. Someone might invest in EWC to diversify outside the U.S. and benefit from Canada’s resource-rich and financial-heavy economy. A key risk is that the fund is heavily tilted toward financials and commodities, so its value can rise and fall with those sectors and the overall market.
How much will it cost me?The iShares MSCI Canada ETF (EWC) has an expense ratio of 0.50%, which means you’ll pay $5 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is passively managed but focuses on a specific geographic region, which can involve additional costs. Overall, it’s still a cost-effective way to gain exposure to the Canadian market.
What would affect this ETF?The iShares MSCI Canada ETF (EWC) could benefit from rising global demand for energy and materials, as these sectors are significant parts of Canada's economy and the ETF's portfolio. However, it may face challenges if interest rates increase, which could pressure the financial sector, its largest exposure. Additionally, economic slowdowns or regulatory changes in Canada could negatively impact its top holdings, such as major banks and energy companies.

EWC Top 10 Holdings

EWC is leaning heavily on Canada’s big banks, with Royal Bank, TD, and Bank of Montreal all rising and acting as the fund’s main engine lately. Energy names like Enbridge and Canadian Natural are also pulling their weight, giving the ETF a solid boost from the country’s resource backbone. On the flip side, Shopify has been lagging, so its weakness is taking a bit of shine off the tech slice. Overall, this is a Canada-first play, dominated by financials and energy rather than flashy global growth stories.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Royal Bank Of Canada7.84%$335.74M$226.92B42.14%
75
Outperform
Toronto Dominion Bank5.48%$234.75M$159.46B57.49%
74
Outperform
Shopify5.23%$223.86M$161.63B21.87%
77
Outperform
Enbridge4.10%$175.73M$116.20B21.69%
69
Neutral
Agnico Eagle3.62%$155.18M$98.14B85.90%
80
Outperform
Canadian Natural3.51%$150.28MC$140.78B59.83%
81
Outperform
Bank Of Montreal3.34%$142.90MC$133.90B40.70%
74
Outperform
Canadian Bank of Commerce3.08%$131.84MC$122.81B69.81%
74
Outperform
Bank Of Nova Scotia2.96%$126.54M$86.10B44.70%
77
Outperform
Brookfield Corporation2.75%$117.82M$96.22B8.91%
65
Neutral

EWC Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
55.90
Negative
100DMA
53.86
Positive
200DMA
50.64
Positive
Market Momentum
MACD
-0.14
Positive
RSI
39.62
Neutral
STOCH
25.08
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For EWC, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 56.75, equal to the 50-day MA of 55.90, and equal to the 200-day MA of 50.64, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 25.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EWC.

EWC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$4.64B0.50%
74
Outperform
$10.22B0.19%
74
Outperform
$9.13B0.33%
72
Outperform
$8.78B0.21%
74
Outperform
$7.14B0.02%
74
Outperform
$670.36M0.09%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EWC
iShares MSCI Canada ETF
54.10
13.70
33.91%
BBCA
JPMorgan BetaBuilders Canada ETF
CGUS
Capital Group Core Equity ETF
ONEQ
Fidelity Nasdaq Composite Index ETF
BBUS
JP Morgan Betabuilders U.S. Equity ETF
FLCA
Franklin FTSE Canada ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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