WHY CANADA IS THE MARKET'S SMALLEST LOSER

A look at global stock market returns over the past year produces a clear theme: With just about every country index down in the last 12 months, the "smallest loser" is the biggest winner.

As of yesterday's close, the smallest loser among country-specific ETFs is the iShares Canada (EWC).

Canada earned this label with one of the world's richest bundles of natural resources. The country is dotted with huge mineral deposits. It's home to the world's safest large oil field. It's also blessed with timber, diamonds, and agricultural assets. Despite the big commodity correction this summer, the prices of these resources are much higher than they were six years ago.

With large weightings in Barrick Gold (the world's largest gold company), Suncor Energy (oil), Teck Cominco (base metals), and Canadian Natural Resources (oil), the EWC is down just 9% in the past 12 months. This is actually a solid return when compared with the huge losses China, Russia, Korea, England, and India have suffered. There aren't many places to hide in a bear market... but Canada is providing a small amount of shelter.