Canadian stocks are buys despite tariff risks

Article Excerpt

The Canadian economy ranks among the top 10 globally and is considered to be in the top 20 of the world’s most competitive economies. Notably, the prosperity of our country’s economy is highly dependent on exports to the U.S., its main trading partner. That means tariffs imposed by the U.S. would hurt our economy. Still, the extent or duration of those taxes remains unclear (see box next page). Regardless, Successful Investors will continue to benefit from including on quality holdings like Canada’s top public companies. BMO S&P/TSX CAPPED COMPOSITE INDEX ETF $33.16 (Toronto symbol ZCN; TSINetwork ETF Rating: Conservative; Market cap: $9.4 billion) invests in publicly listed Canadian companies. The ETF tracks the S&P/TSX Capped Composite Index. That index represents about 95% of the Canadian stock market’s overall value, and so provides a fair representation. Stock weights are capped at 10% per company to avoid overly large exposure to any individual company. Financial companies account for a large 32% of overall assets, while Energy (18%), Industrials…