Adding foreign investments to a portfolio is an excellent way to diversify and enhance its long-term growth potential. Why?
- Canada only represents a small percentage of global investments; the top-performing markets often lie outside our borders.
- Holding only Canadian investments will limit the investor's options.
History has also shown that a diversified portfolio of Canadian and foreign investments offers the right mix of lower risk and higher return over the long run. By diversifying your portfolio to include international markets, you increase the likelihood of tapping into the "up" markets around the world and decrease the effect of a downturn in any single market.