Updated on September 2nd, 2024 by Kay Ng
For Canadian investors, having exposure to the United States stock market is very important. There are a number of reasons why.
First, the United States is the largest stock market in the world. In order to avoid home country bias and have a globally diversified investment portfolio, exposure to American stocks is required.
Second, there are certain sectors that are underrepresented in the Canadian stock market. Examples include healthcare, technology, and consumer staples. Interestingly, these sectors are among the strongest in the U.S. market.
To invest in stocks from the United States, Canadian investors need to understand how this will impact their tax bills.
This article will discuss the tax implications for Canadians that invest in U.S. stocks, including examples of dividend- and non-dividend-paying stocks held in both taxable accounts and non-taxable accounts.
