The Cape Dorset sent out a distress call when it began taking on water at about 9 a.m., the Canadian Broadcasting Corp. reported.
The Ivy Rose, a vessel in the vicinity, responded to the call and found the 19 members of the Cape Dorset's crew, Maj. Martell Thompson of the Joint Rescue Coordination Center in Halifax said. No injuries were reported.
"That crew was able to make it to a life raft where they were rescued by another fishing vessel in the vicinity, and that fishing vessel is now en route to rendezvous with the George R. Perks Coast Guard vessel," he said.
The Ivy Rose planned to transfer the rescued fishermen to the Perks.
The Cape Dorset, owned by Icewater Harvesting of Arnold's Cove, Newfoundland, was purchased in April 2013 with a subsidy from the Newfoundland and Labrador government.