Are there mutual funds that either specialize/concentrate or have large exposure to Canada Oil Sands.
There are enough oil reserves in Alberta to last at least 60 years, experts say. Some say another 100,000 people are needed in Fort McMurray while others are expecting up to $100 billion to be invested in the oil sands over the next 10 years. Surely other businesses will prosper with that kind of growth and spending power. Think of the folks that made money during the Yukon gold rush - those that supplied clothes, services, food, and equipment, to name a few.
Besides individual names like PBG.TO, CLL.TO, OPC.TO, and ECA, I'm betting on Canada through the Canada ETF (Exchange Traded Fund), symbol EWC. It holds energy companies as well as banks, industrial materials, financials, consumer goods, telecom, healthcare, and more. In short, EWC holds 95 different kinds of companies, most that will directly benefit from the 50 year run of the oil sands. The average PE in the fund is only 16 and expenses are a low .57% I own EWC in addition to my oil sands companies because I believe all of Canada will benefit from the tremendous growth ahead; it gives me 27% exposure to Canadian energy, 19% Canadian banks, 16% materials, 10% insurance, as so on.
There are other funds that focus on Canada, of course, but EWC is arguably the lowest cost way to get a basket of Canadian companies. I actually called Fidelity and suggested they start a sector fund on Canadian energy companies. They do have a Canada fund but it appears to overlap EWC and is more expensive to own. A one year chart shows the two move in lockstep but EWC slightly outperforms the Fidelity fund:
finance.yahoo.com
The main point is that I believe you should be invested in "all things Canada" now and hold it for the next 20 years. EWC is a good long term core position, I believe, and I will move in and out of individual names as things develops.
The energy positions in EWC are (in order of portfolio size): ECA, SU, CNQ, PCA, TLM, TRP, NXY, IMO, CCO, ENB, SHC, and HSE. I've created a Yahoo list of these companies here:
finance.yahoo.com
A complete list of all 95 EWC holdings is here:
ishares.com
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