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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 mainly by strong Canadian financial and resource leaders. High-quality holdings like Canadian Natural and Agnico Eagle support the fund with robust financial performance, efficient operations, and positive earnings outlooks, while major banks such as Royal Bank of Canada and Toronto-Dominion add stability through solid earnings and dividends despite some leverage and cash flow concerns. The main risk is the ETF’s heavy concentration in a few sectors—especially financials and energy—where several holdings face high leverage, overvaluation signals, or volatile cash flows that could weigh on future returns.
Positive Factors
Solid Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating positive momentum.
Strong Canadian Bank Exposure
Several major Canadian banks in the top holdings have delivered steady to strong results, helping support the fund’s overall performance.
Large, Established Fund
The ETF manages a sizable pool of assets, suggesting it is widely used and offers good liquidity for everyday investors.
Negative Factors
High Sector Concentration in Financials
A large portion of the portfolio is invested in financial companies, which can hurt returns if that sector struggles.
Underperforming Top Holding
One of the largest positions, Shopify, has shown weak performance this year, which can drag on the fund’s results.
Moderately High Expense Ratio
The fund’s ongoing fee is on the higher side for an index ETF, which slightly reduces the net return investors keep over time.

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

EWC Summary

The iShares MSCI Canada ETF (EWC) tracks the MSCI Canada Index, giving you broad exposure to many of Canada’s largest companies in one investment. It holds major banks and resource firms, with top positions in well-known names like Royal Bank of Canada and Shopify. This fund can be a simple way to diversify outside the U.S. and tap into Canada’s financial, energy, and materials sectors for potential long-term growth. However, it is heavily tilted toward financial and resource stocks, so its value can rise and fall sharply with changes in 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 right now. Shopify, once the market darling, has been more of a roller coaster, with recent gains but a weaker trend over the past few months, which has taken some shine off returns. On the resource side, Canadian Natural is powering ahead while Enbridge has been steadier, offering ballast. Overall, this is a Canada-first play, concentrated in financials and energy with a tech twist from Shopify.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Royal Bank Of Canada8.17%$421.84M$245.63B48.99%
75
Outperform
Toronto Dominion Bank5.91%$305.30M$177.88B68.38%
74
Outperform
Shopify5.03%$259.78M$164.38B26.03%
77
Outperform
Enbridge3.79%$195.72M$116.58B12.46%
69
Neutral
Bank Of Montreal3.57%$184.32MC$146.92B58.92%
74
Outperform
Canadian Bank of Commerce3.40%$175.38MC$138.84B78.26%
74
Outperform
Agnico Eagle3.29%$169.97M$100.45B66.47%
80
Outperform
Bank Of Nova Scotia3.13%$161.54M$93.59B55.20%
77
Outperform
Canadian Natural3.11%$160.43MC$126.60B52.09%
81
Outperform
Brookfield Corporation3.06%$158.09M$102.03B26.06%
65
Neutral

EWC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
56.50
Positive
100DMA
55.62
Positive
200DMA
52.35
Positive
Market Momentum
MACD
0.60
Positive
RSI
60.41
Neutral
STOCH
56.79
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For EWC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 57.52, equal to the 50-day MA of 56.50, and equal to the 200-day MA of 52.35, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 56.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWC.

EWC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$5.32B0.50%
74
Outperform
$10.57B0.19%
74
Outperform
$9.78B0.21%
74
Outperform
$7.78B0.02%
74
Outperform
$6.45B0.98%
67
Neutral
$724.95M0.09%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EWC
iShares MSCI Canada ETF
58.40
16.40
39.05%
BBCA
JPMorgan BetaBuilders Canada ETF
ONEQ
Fidelity Nasdaq Composite Index ETF
BBUS
JP Morgan Betabuilders U.S. Equity ETF
AKRE
Akre Focus 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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