Canada’s stock market has great potential

Article Excerpt

The Canadian economy ranks among the top 10 globally and has performed better than most of its large, developed peers over the past decade. The country is also among the top 15 most-competitive economies in the world; to date, it has fared relatively well at containing the COVID-19 pandemic. Despite this, our stock market has lagged the U.S. over the past decade or so—held back mostly by a large proportion of energy and mining stocks. Still, the country is home to many high-quality corporations and offers attractive investment prospects. Here is an ETF that provides exposure to the top Canadian stocks. BMO S&P/TSX CAPPED COMPOSITE INDEX ETF $22.10 (Toronto symbol ZCN; TSINetwork ETF Rating: Aggressive; Market cap: $4.2 billion) lets investors track the S&P/TSX Capped Composite Index. It selects stocks from a large universe of Canadian equities, while the fund’s stock weightings are based on their individual market capitalizations. Still, to improve diversification, all individual stock weights are capped at 10%. Financial firms account for…