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Topic: How To Invest

ISHARES MSCI CANADA INDEX FUND $25.44 – New York symbol EWC

ISHARES MSCI CANADA INDEX FUND $25.44 (New York symbol EWC; buy or sell through brokers) is like a market-cap-based index fund, but its managers try to improve performance by tinkering with the index-fund formula. They do this through their proprietary Morgan Stanley Capital International Canada Index. The fund has an MER of 0.55%.

The index’s top holdings are: Royal Bank, 7.1%; TD Bank, 5.6%; Suncor Energy, 4.5%; Bank of Nova Scotia, 4.4%; Barrick Gold, 3.9%; Canadian Natural Resources, 3.6%; Bank of Montreal, 3.1%; Goldcorp, 3.0%; Research in Motion, 2.9%; Potash Corp., 2.8%; Manulife, 2.8%; and CN Railway.

If you want to own a Canadian index fund, you should buy the iShares S&P/TSX 60 Index Fund. You’ll pay about a third of the management fees.

We don’t recommend iShares MSCI Canada.

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