Why foreign investment and how much should you have? 

Over the last 20 years, international markets have outperformed Canadian markets by almost 2% a year.  It makes sense to invest globally not only based on historical returns, but also because many economic sectors (eg. Healthcare) are not significantly represented in Canadian markets.  In addition, Canada only represents 3% of world stock markets.

However, investing globally is higher risk, partially due to currency fluctuations.  So the lowest risk blend of foreign to Canadian for the equity portion of your portfolio is 40%/60% (see chart, above), but for most clients, a 50%/50% split will provide the best risk/return tradeoff.

We would be pleased to review your foreign investment (including the foreign holdings in your Canadian funds) in our comprehensive Asset Allocation review.

Please contact your ScotiaMcLeod Wealth Advisor directly for more information or for investment advice tailored to your personal situation.

The information contained on this website is for use by persons resident in Canada only.