I came across an interesting comment from David Rosenberg recently (on BNN). He suggested that many Canadians have too much of their equity portfolio invested in Canada. When you think about it, that makes sense. We tend to invest in what we know. Canadian banks, energy companies, pipelines, telecoms, and dividend payers are familiar names for many of us. The question is whether familiarity is causing us to miss out on opportunities elsewhere. Many Canadians already have a lot riding on the Canadian economy through their job, home, pension, and government benefits. If most of your investments are also in Canada, you may be more concentrated than you realize. That's one reason broad-market ETFs like $XEQT, $VEQT, $XAW, $XEC, and $VFV have become so popular. They make it easy to gain exposure to businesses and economies around the world instead of relying primarily on one country. For me, diversification isn't about avoiding Canada. It's about making sure I'm not dependent on any single country to achieve my long-term goals. How much of your portfolio is invested outside Canada? — This is for informational purposes and is not financial advice. Always do your own research before making investment decisions.
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13 Comments
Vishal Teckchandani
@vteck85 · 12dEdited
To be honest I feel comments like David Rosenberg's seem to be downplaying Canadian equities, and it seems to be a Canadian thing to do to bash Canadian equities. I'd like to remind fellow investors of the value the TSX brings to the table in weeks like this. If you had a considerable allocation to something like a ZCN, you'd be asking "um, what volatility?" TD Bank hit a record; Constellation is going ballistic, low-vol stocks like Dollarama are pumping in a week when semiconductors melted. While TSX returns haven't been as juicy as S&P 500 over the past decade (~13% p.a. when eligible dividend tax credits are factored in vs 15%), they've still provided plenty of juice. I'm from Australia and I feel like the TSX is an absolute candyland - you can build a great portfolio out of just a few good companies like the banks, software stocks, industrials (which are riding Carney's investment cycle) and supermarkets to build a good quality diverse portfolio. Not to say you shouldn't have international stocks (I know I do), but I love Canada!
Catherine
@ffcatherine · 12dEdited
For my stock portfolio I’m about 90% outside of Canada. I own real estate in Canada plus looking at total world, I chose to bet more on the USA for the long term When I chose my portfolio allocation in ‘23 I had family said that I loved the USA etc etc .. investing shouldn’t be about emotions it should be about what you believe is going to give you the best return (It’s hard to over come that bias as a Canadian especially if you grew up with hearing a certain view point )
Nicoqui @nicoqui2 · 11d
Spx/tsx chart says TSX should have its run a couple more years against US assets.
Chris Pember@goldengriddle · 11d
I like my Canadian blue chips and midtiers. They are an anchor. But I am stuffing and constantly stuffing more and more bucks into the world's best market. 500 of the best race horses money can buy.
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