iShares MSCI Canada UCITS ETF (Acc)

The SXR2 ETF is consistently paired with broad-market equity instruments, most notably SPPE for US exposure and EUNK for European markets. These core holdings typically represent between 45 and 75 percent of the total portfolio weight, positioning SXR2 as a satellite component rather than a primary driver. By integrating Canadian equities alongside these dominant regional funds, investors appear to be seeking geographic diversification that captures the energy and financial sector tilts inherent in the Canadian market, effectively balancing the heavy technology and growth biases found in US-centric indices.

EuroFolio members utilize SXR2 primarily as a tactical diversification tool to complement global equity strategies. While some high-performing portfolios allocate as much as 15 percent to SXR2 to gain meaningful exposure to the Canadian economy, more conservative or multi-asset portfolios treat it as a minor holding, often keeping allocations at 2 percent or lower. The data suggests that when SXR2 is held at higher weights, it contributes to a robust Sharpe ratio, indicating that the inclusion of Canadian equities provides a beneficial risk-adjusted return profile when combined with a diversified foundation of global stocks, bonds, and commodities.