The Quebec economy has experienced impressive growth this decade buoyed by improvement in public administration and international investment. Heading into the last months of 2017 the province looks geared for positive growth. The province is projected for 3% growth in 2017 which would represent the fastest rate since 2002.
The First Asset Morningstar National Bank Québec Index ETF (TSX:QXM) has climbed 9.5% in 2017 and 12% year over year. Some of its top holdings include the Montreal-based dollar store powerhouse Dollarama Inc., the grocer Metro, Inc., and National bank of Canada, among others.
The province has had a history that has drawn skepticism from investors. Quebec voters narrowly voted against separation in 1995 and though the debate continues it has receded in the last few years. The province has boasted solid job creation, and Montreal’s tech and housing market has been booming.
On the administrative side, the government has vowed to deliver a budget surplus for the second year in a row. Unemployment reached a record low of 5.8% in the previous quarter. The province is set for its next election in October of 2018.
Since launching in October 2012 this ETF has gained 93%. Quebec is well positioned to post another year of solid economic growth with the country at large slated to lead the G7 in 2018 according to the IMF. For investors who want to take advantage of the great story in Quebec, this ETF comes at a good price and has outpaced the S&P/TSX Index in 2017.
