Number 30 on ETFdb’s list of “101 ETF Lessons Every Financial Advisor Should Learn” points out that Canada is not represented in the MSCI EAFE ETFs.

30. Canada Isn’t In EAFE ETFs

Canada is a dynamic economy home to a relatively strong, stable banking system, and has massive natural resource reserves that uniquely position it to thrive from the growing demand from emerging markets. But, believe it or not, many supposedly well-diversified portfolios overlook this economy entirely. That’s because it isn’t included in the EAFE region that is covered by funds such as EFA and VEA. Though investors generally think of the EAFE as broadly including developed markets outside the United States, it is actually a gathering of developed economies that excludes North America.

So, what options are there for investors who want exposure to developed international markets, including Canada?  Look no further than our own PowerShares DWA Developed International Technical Leaders ETF (PIZ).  Canada currently has an allocation of 11.10% in PIZ.

Source: PowerShares

The fact that Canada has been relatively strong in recent years and has therefore had a healthy allocation in PIZ has been part of the reason that PIZ has outperformed EFA and VEA since the major bear market low.

Source: Yahoo! Finance (3/9/09 – 6/5/12)

See www.powershares.com for more information about PIZ.  A list of all holdings for the trailing 12 months is available upon request.

This article originally appeared on the Systematic Relative Strength blog.