Is Your Portfolio Too Canadian?

Likely yes, our research finds, as home country bias is a real challenge in the North.

Ian Tam, CFA 18 November, 2021 | 1:09AM
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Global Investing

One thing that plagues investors across the world is the over-exposure to domestic equities, a term known as home-country bias. Regardless of the cause, investors should consider ensuring that their portfolios are not overly weighted toward domestic stocks. The reasons for this are outlined in a video I recorded last year. This begs the question – what should my weight be in domestic equities?

Like many aspects in investing, there’s not a one-size-fits-all answer. However, here are three reference points to consider in comparison to your own exposure to domestic equities:

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About Author

Ian Tam, CFA  is Director of Investment Research at Morningstar Canada. 

 

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