Franklin FTSE Canada ETF

FLCA

Market cap $690M

Dan Clifton, Strategas head of policy research, joins 'The Exchange' to discuss the economic fallout from the recent tariff push, the new rules and much more.

Franklin FTSE Canada ETF offers low-cost, large-cap Canadian equity exposure with a financials-heavy portfolio and no healthcare sector allocation. FLCA, which has a best-in-class expense structure, outperforms larger peers on risk-adjusted returns and yield, but suffers from wider bid-ask spreads and lower trading volumes. FLCA is exhibiting strong momentum, and Canadian banks' sturdy tier 1 capital ratios reflect well on higher payouts.

Activity in Canada's services industry contracted even more sharply to start the new year, extending a downturn as tariffs and broader uncertain continue to weigh heavily, data released Wednesday showed.

Fundamental conditions sound good for the TSX in 2026. Metals and financials may be sectors to watch.

Canadian stocks continue to rise despite "wall of worry." Why USMCA could be the biggest market driver for Canadian stocks in 2026.

Prime Minister Mark Carney said this represents a pivot in the country's industrial strategy that needs to adapt given the significant revamp to global trade.

Why Canadian stocks are performing well, despite tariff uncertainty. What the latest Canadian bank earnings told us about the health of the economy. Where to find dividend growth in the Canadian market.

The Franklin FTSE Canada ETF offers low-cost exposure to the Canadian stock market, with an expense ratio of just 0.09%. FLCA is heavily weighted toward financials, which may face challenges due to economic troubles and potential rate cuts by the Bank of Canada. Energy sector risks include dependency on US exports and falling crude prices, while IT exposure through Shopify is affected by US-China trade relations.

Canadian election outcome may be positive for business no matter the winner. Earnings season may see challenges due to trade uncertainty. Defensive stocks in favour but may come under pressure if earnings don't deliver.

Franklin FTSE Canada ETF seeks to closely track the FTSE Canada RIC Capped Index. This is one of 3 ETFs that focus on Canadian equities, and all 3 have performed similarly. The global market is too pricey for me to look at this ETF to own currently. But its stock holdings represents a nice shopping list for stock picking.