This shift, although at a lesser extent, is also observed in other developed markets, including Australia, Japan, and the US.
“Canadians are showing greater appetite for global equities which is positive and follows a global investing trend to favour international markets,” said Sal D’Angelo, head of Product, Vanguard Investments Canada.
“However, the rate of overexposure to domestic securities is still relatively high. Lack of diversification in your portfolio can lead to sector concentration, greater volatility, and less efficiency with your investments, all of which can contribute to higher risk.”
Home bias refers to the tendency of investors to allocate a significant portion of their investment portfolio to domestic assets while underweighting international investments.
“Canadian investors have a long-standing belief and pride with investing close to home. This is a sound strategy…
