Home Country Bias - What Is It, and Why Does It Matter?

Efficient Markets

English - September 01, 2021 18:44 - 12 minutes - 12.1 MB
Investing Business Education Self-Improvement pension rrsp tfsa canada dimensional finance index indexing investing passive Homepage Download Google Podcasts Overcast Castro Pocket Casts RSS feed

Previous Episode: Tapping into Home Equity to Fund Retirement

Next Episode: Canadian Prime Ministers and Canadian Stock Returns, Intra-Year Declines, and the Behaviour Gap

Welcome back to Efficient Markets.

On today's episode, we talk about home country bias.

According to Statista.com - Canadian stocks make up 2.4% of the total global equity market capitalization. According to Vanguard, Canadians, on average, allocate about 56% of their equity portfolios to Canadian stocks.

This is what is called a home country bias.

We talk about the issues with allocating so much of your portfolio to Canadian stocks and some of the reasons that you may want to diversify away from Canada in your portfolios.

Detailed show notes and links can be found on my blog this week at www.walhoutfinancial.ca. Thank you for listening.

Mark