Invest In the Great White North AKA Canada

Google+ Pinterest LinkedIn Tumblr +

One easy way to invest in Canada is through Canada focused mutual funds. There are dozens that focus on Canada including some no load funds.

Mutual funds are however generally expensive. Typically you will pay a significant “load” read commission, to your broker. This can be as high as 5% depending on how much you invest. Internal expenses can also eat into your returns. Internal costs for mutual  funds can also run 1.5% or more. So read the prospectus. I generally am not a fan of mutual funds Canadian or otherwise.

Another way to invest in Canada is by buying companies based in Canada. There are dozens of companies to choose from that trade on the NYSE. One of my personal favorites is Cameco the world’s largest uranium miner. It’s not for everyone but Cameco is primed to take advantage of a world that will increasingly look to nuclear energy to solve energy problems.

Canadian stocks are stocks however and are subject to all the risks of the marketplace so  always invest with your eyes open.

I personally prefer another investment alternative to mutual funds and stocks however, ETFs, or exchange traded funds.

ETFs seek to follow indexes. In other words one can buy the Ishares MCSI Index ETF EWC, and follow the performance of the Canadian stock exchange. It’s an easy way to play Canada on a macro level without getting entangled in the minutia that surrounds stocks and the costs of mutual funds.

ETFs are very low in cost. Typically the internal fees of exchange traded funds are near zero. Also one need not worry about paying a broker a large load. The only commission you will pay your broker is the relatively small one you incur when you buy or sell. If you do business with a discount broker the cost of such moves is also close to nothing.

Canada is a country rich in resources. A growing world population will need these resources. Might as well grow your portfolio at the same time.


About Author

Leave A Reply