As a country, Canada has the world’s second-largest land mass and what is considered the seventh-largest economy. The country’s energy exports are comprised mostly of energy commodities (oil, natural gas, gold, maple syrup, and coal). In terms of minerals, the country ranks No. 5 in mining (potash, gold, diamonds, nickel, and titanium, among others).
Novices to the commodities market can invest in a few ways. Of course, with enough research, prospective investors can directly purchase stock in the number of mining and extracting companies in the country. Investors to the market can also place their money in exchange traded funds (ETFs) and American depositary receipts (ADRs). Both types of funds include a broad range of stocks and bonds over an industry.
Each has its own benefits, in addition to providing investors with a breadth of stock and bond picks, with ETFs being able to track both the economy and individual companies, and ADRs allowing the purchase of individual companies without requiring a foreign exchange. Popular ETFs include Canada Energy Income, MSCI Index Fund, and IQ Canada Small Cap, among others. ADR funds include Bank of Montreal, Canada Natural Resource, Ltd., and Brookfield Properties, Inc.
