iShares TSX 60 (IUTSF) Slips as Alberta Committee Considers U.S. Statehood

While much of Canada business news is focused on the tariffs, one province in Canada is taking them as an opportunity to pursue a course of action that may have been stewing for a decade. A delegation from Alberta is reportedly making its way to Washington to consider the matter of becoming, potentially, the 51^st state. The move had oddly far reaching ramifications, as the iShares S&P was down nearly 2% following Thursday’s trading.

The reports note that Canadians are “fed up” with the policies of the Trudeau administration, and are thus getting together to find out what it might take to shift their alliances and become a state in the United States instead of a Canadian province. The move reflects a growing discontent of some parts of Canada, like Alberta, with the Trudeau administration, and the idea that their viewpoint might be better considered elsewhere.

Certainly, the Trump administration would welcome it; Alberta is a resource-rich province, and having it as a state would drive a lot of domestic production and new jobs accordingly. Alberta will not only accept statehood, the reports note, but will also consider status as a territory, or even as an independent nation with direct economic ties to the United States.

“You Can’t Opt Out Of Canada.”

The idea that Alberta might become a state rather than a province is sparking concerns all throughout Canada. Indeed, Trudeau himself—when discussing Saskatchewan’s move to refuse to collect a carbon tax—responded that “you can’t opt out of Canada,” and that he expects all Canadian citizens to “obey the law.” Considering that is pretty much exactly what Alberta is looking to do is do, it serves as an excellent point to illustrate the Canadian government’s position.

Regardless of Trudeau’s stance here, the delegation for Alberta to migrate is gaining ground, with some reports suggesting that the conditions for Alberta to consider such a move have been in play for the last 10 years or longer.

Is the iShares S&P / TSX 60 Index ETF a Good Buy Right Now?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on IUTSF stock based on 52 Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 20.15% rally in its share price over the past year, the average IUTSF price target of $30.24 per share implies 16.3% upside potential.

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