There’s plenty to love about this country on Canada Day weekend but a new report from Vanguard says we’re overdoing it when it comes to investing for our retirements.
It finds Canadian investment portfolios are 18 times overweight in their Canadian holdings; increasing exposure to domestic risks and decreasing exposure to a world of opportunity outside our borders.
The term is “home bias”. According to the report, Canadian securities account for about half of Canadian portfolios despite the fact that Canadian securities account for only 2.6 per cent of the global market.
Of that tiny sliver of global securities, roughly two-thirds of the stocks listed on Canada’s Toronto Stock Exchange are tied to the finance and resource sectors.
In addition, the report says the top ten holdings in Canada constitute more than 38 per cent of the S&P/TSX index. That’s a high concentration compared with the global market where the top ten…
