EWG vs ZCAN Fund Comparison

A comparison between EWG and ZCAN based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on EWG vs ZCAN

Here's an in depth look at the differences between iShares MSCI Germany ETF ($EWG) and SPDR Solactive Canada ETF ($ZCAN).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

73% FI Score
  • ewg
  • ETF
  • International Stocks
  • Other Region

iShares MSCI Germany ETF

Expenses: 0.49% (Better than 1% of similar funds)

This is an OK choice for a Other Region International Stocks fund. See why »

58% FI Score
  • zcan
  • ETF
  • International Stocks
  • Other Region

SPDR Solactive Canada ETF

Expenses: 0.14% (Better than 1% of similar funds)

This is an OK choice for a Other Region International Stocks fund. See why »

Both $EWG and $ZCAN are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Both of these funds are International Stocks Other Region funds – which means they're likely both investing in about the same investments behind the scenes.

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

EWG ZCAN
Market Score 9.5 /10 3.2 /10
Category Score 5.0 /10 5.0 /10
Total 14.5 8.2

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for EWG is 0.0/10, while ZCAN has a diversification score of 4.3/10.

In other words, ZCAN more closely matches it's benchmark.

Winner: $EWG

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, EWG has an expense ratio of 0.49% while ZCAN has an expense ratio of 0.14%.

Winner: $ZCAN

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, EWG is a large fund with 1.79 Billion in assets under management. ZCAN, on the other hand, is a small fund with 17 Million in assets under management.

Winner: $EWG, iShares MSCI Germany ETF

Which Should You Choose? EWG or ZCAN?

Since both of these funds are International Stocks Other Region funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives EWG a score of 73 and ZCAN a score of 58.

Since both of these have a similar FI Score, the difference between these two if minimal. A higher FI Score doesn't mean future growth will be higher, but it does mean that it better fits criteria for a good fund. Neither of these funds has an FI Score above 90 – which is a red flag. I'd look into more funds to find one with a higher FI Score.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$EWG

iShares MSCI Germany ETF

73

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 7 /10
Expense Rating 5 /10
Market Score 10 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Mar-12-1996
Exchange NYSE ARCA
Expense Ratio 0.490%
Net Assets 1.79 Billion
Yield 2.87%
Holdings
Description Info
Market International Stocks
Category Other Region
Sectors
  • Basic Materials 8.53%
  • Communication Services 6.94%
  • Consumer Cyclicals 15.25%
  • Consumer Defensive 3.19%
  • Energy 0.00%
  • Financial Services 15.59%
  • Healthcare 13.15%
  • Industrials 12.25%
  • Real Estate 5.21%
  • Technology 15.67%
  • Utilities 4.22%
Regions
  • Europe Developed 99.17%
  • North America 0.83%

$ZCAN

SPDR Solactive Canada ETF

58

Read More
Ratings
Rating Type Rating
Diversification Score 4 /10
Expense Ratio Score 9 /10
Expense Rating 9 /10
Market Score 3 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Exchange NYSE ARCA
Expense Ratio 0.140%
Net Assets 17 Million
Yield 3.03%
Holdings
Description Info
Market International Stocks
Category Other Region
Sectors
  • Basic Materials 11.05%
  • Communication Services 6.57%
  • Consumer Cyclicals 3.19%
  • Consumer Defensive 5.30%
  • Energy 13.99%
  • Financial Services 33.91%
  • Healthcare 0.27%
  • Industrials 11.25%
  • Real Estate 1.05%
  • Technology 9.46%
  • Utilities 3.97%
Regions
  • North America 100.00%

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