No portfolio in Canada can be considered diversified without significant international exposure. US equities represent about half of global equities, offering a broader base for diversification.
Canadians with US dollar accounts inside registered retirement savings plans (RRSPs) or tax-free savings accounts (TFSAs) can invest directly in US dollars.
This approach can save thousands in currency exchange fees, provide protection against fluctuations in the loonie, and improve returns when converting profits back to Canadian dollars.
US dollar–denominated assets, such as equities, often pay larger dividends and produce greater capital gains in Canadian currency upon sale.
Access to US stocks is available through most Canadian trading platforms. A wide range of foreign mutual funds and exchange traded funds (ETFs) is also available.
