Canadian investors have historically allocated a significant portion of their portfolios to home-country equities, a phenomenon often referred to as home country bias.
While Canadian equities can serve as core holdings for many, a heavy domestic weighting has the potential to increase vulnerability to local macroeconomic shifts. Overexposure to a single market may amplify sector-specific risks, which can impact long-term portfolio volatility.
The Emerging Demand for Global Equity
As of November 2025, international equities were up 31%, as measured in U.S. dollars, according to analysis from J.P. Morgan Asset Management.
Recent data from January 2026 shows that investors are increasingly looking beyond domestic borders. International equity ETFs saw inflows of $7.1 billion, outpacing both Canadian-focused ETFs at $4.0 billion and U.S. equity ETFs at $3.4 billion.
Investors appear increasingly willing to look beyond North America in search of diversification and return potential.
Strategic Integration with North American Equities
Active international strategies can be used to complement domestic and U.S. equity holdings. By integrating global equities, portfolios can access a broader set of industries and geographies.
Funds like the JPMorgan Global Select Equity Active ETF primarily invest in large-cap stocks across global markets. Beyond the U.S., the funds largest country allocation typically include Japan, France, Taiwan, Germany, Netherlands and the United Kingdom.
For Canadian investors, incorporating active international strategies may help reduce structural biases, manage volatility and participate in a broader range of global growth drivers.
The trend in ETF flows suggests advisors are already moving in that direction.