# How much Canada do you have in your portfolio and what is your honest outlook for the Canadian Economy now and 20 years from now?



## NewbieInvestor88 (Feb 21, 2021)

As someone approaching their mid 30s, it’s more than a bit scary right now with the only economic plan right now is make people buy houses. A lot of the capital being spent right now is being spent on things that are fixed - houses, telecom, banks, etc. No innovation, no tech, no nothing. The money printing was necessary due to COVID but I don’t feel like there is actually a plan to make Canada into something other than the world’s supply of rocks, trees and water (and oil).

That being said, I have VGRO in my portfolio so there is a decent exposure to Canada.


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## AltaRed (Jun 8, 2009)

Some might say the Vanguard offerings have too much weighting in Canada. The Blackrock series have less and may be a better option for some.

Added later: As for the Canadian market, I think it will slightly under perform the US market longer term mainly because our productivity is about 80% of that of the USA but our market is probably competitive with Europe. While history is not certainty of the future, the past 40 years of data here is probably not out of line with the future on a relative basis (between regions).


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## Jimmy (May 19, 2017)

The dividend tax credit makes holding CDN stocks an adv over the rest of the world. I have ~ 19% of my total assets in Cdn stocks. There are some good stocks in all sectors that should do well despite the federal govts policies.

You can hold an ETF or individual stocks.


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## Ponderling (Mar 1, 2013)

I am 55, and have always held about 60% equity, 40% bond, and still kinda do.
I can understand why folks are lighter on bond, buy I am close to an ER so do not want my market holdings
bounce as much as an all equity position would be.

Now I am 22% bond, and that includes a preferred shares managed ETF. The rest is bond etf, with about half in CAD and half in USD.

Then I am about 20% Cdn REIT, which is equity, but usually not a volatile as the rest of the equity market in my opinion.

Then the rest aims to be equal percent holdings of Cdn, US, and Int. Right now I have a surplus of cdn, since divvy stocks have been going well since covid recovery kicked in

All Intl is ETF, most US is ETF, but almost all cdn is individual stocks.


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## KaeJS (Sep 28, 2010)

My TFSA is 100% Canadian...

So that makes up a large portion of my "portfolio". Lots of my equity is tied up in two RE properties.

My RRSP is 100% XEQT, and my Non-registered portfolio is a mixture of international only, such as XDUH, XCH, XSP, XEM, XEF, XEU, XQQ, etc. I have 0% Canadian exposure in my non registered.

To answer your question in short, I'm roughly 70% Canadian weighted, but that is changing weekly as I add more to my Non-registered. I really want more international exposure, but I did not want to hold internationals in my TFSA and I obviously wanted to max my TFSA first.

Not ideal from a diversification standpoint, but from a tax point of view, it made the most sense. I will balance it out in time.


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## spiritwalker2222 (Nov 7, 2017)

My portfolio is 23% Canadian content. The Canadian market is too small and not well diversified.


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## vas_u4t (Feb 23, 2021)

KaeJS said:


> My TFSA is 100% Canadian...
> 
> So that makes up a large portion of my "portfolio". Lots of my equity is tied up in two RE properties.
> 
> ...


I am mostly invested in Cdn stocks too, and I am afraid a Trudeau victory won't be good for capital gains.


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## Eder (Feb 16, 2011)

My equities are 100% TSX listed stocks other than some Mawer I bought in my RRSP. Not what most people do but it serves me well and funds a nice retirement.


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## Spudd (Oct 11, 2011)

KaeJS said:


> My TFSA is 100% Canadian...
> 
> I really want more international exposure, but I did not want to hold internationals in my TFSA and I obviously wanted to max my TFSA first.


Doesn't it make more sense to hold Canadian in non-registered because of the dividend tax credit? I know there's international withholding tax in TFSA that's lost on your dividends, but I think that pales in comparison to the advantage of the dividend tax credit, doesn't it?


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## KaeJS (Sep 28, 2010)

Spudd said:


> Doesn't it make more sense to hold Canadian in non-registered because of the dividend tax credit? I know there's international withholding tax in TFSA that's lost on your dividends, but I think that pales in comparison to the advantage of the dividend tax credit, doesn't it?


Depends on how you go about it.
If I were to buy US Stocks outright in the TFSA, I'd have to pay a spread up front, too, for currency differences.

I guess a TSX listed ETF for US/International wouldn't necessarily be a bad component...


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## kcowan (Jul 1, 2010)

My equity is 50% US with a tech tilt (only FAANG is AAPL). Canada is lacking in health care, heavy on banks. All of my 12% fixed in Canadian.


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## Juggernaut92 (Aug 9, 2020)

For me I have a 25% allocation in my portfolio to canadian stocks. Like others have said there is not too many options in tsx to diversify so I try and set a limit on tsx stocks.


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## Benting (Dec 21, 2016)

100%, and only has traded less than a dozen stocks so far since 1996, when I opened my self directed account !


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## MarcoE (May 3, 2018)

No Canada inside my TFSA or RSP. Outside of those, about half my equity is Canadian because of the dividend tax credit.


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## investor65 (Aug 3, 2021)

Hello everyone. I may be wrong, but don't we pay less in tax in capital gains vs dividends post tax credit in a nonregistered account? Maybe someone can shed light on this.


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## Spudd (Oct 11, 2011)

investor55 said:


> Hello everyone. I may be wrong, but don't we pay less in tax in capital gains vs dividends post tax credit in a nonregistered account? Maybe someone can shed light on this.


Depends what tax bracket and jurisdiction you're in. 

In Ontario, you pay less on dividends than capital gains up to an income of 98k. Above that, it switches.









TaxTips.ca - Ontario 2022 & 2023 Tax Rates & Tax Brackets


TaxTips.ca - Ontario tax rates for 2022 and 2023 for eligible and non-eligible dividends, capital gains, and other income.




www.taxtips.ca


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## like_to_retire (Oct 9, 2016)

investor55 said:


> Hello everyone. I may be wrong, but don't we pay less in tax in capital gains vs dividends post tax credit in a nonregistered account? Maybe someone can shed light on this.


It depends on both your province and your income.


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## Retiredguy (Jul 24, 2013)

vas_u4t said:


> I am mostly invested in Cdn stocks too, and I am afraid a Trudeau victory won't be good for capital gains.


Singh has said they would do it and if the NDP support the Libs in a minority the odds of Trudeau upping the inclusion rate are high IMO, Singh could claim a win and Trudeau could spin it to his liking as I'm sure many left liberals would like it as well. No talk of the Conservatives doing it but never say never. Aligned with your thinking I crystallized some CG earlier this year and am accumulating cash for next April's tax bill. If you're concerned ("afraid"), what are you doing?


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## Eder (Feb 16, 2011)

investor55 said:


> Hello everyone. I may be wrong, but don't we pay less in tax in capital gains vs dividends post tax credit in a nonregistered account? Maybe someone can shed light on this.


For retired people with no pension the dividend tax credit is very worthwhile maximizing...I think in Alberta we can get up to about 60k tax free .. not sure since my CPP and capital gainsscrews things up a bit.


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## AltaRed (Jun 8, 2009)

The Fed vs Provincial personal deduction messes up that calculation some, but it is close. 

It does appear there is no cigar as of 2021 for zero tax per TaxTips.ca - Alberta Personal Income Tax Rates but it is close. Nip and tuck on dividends and cap gains at $98k and rolls over slightly at $131k.


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## NewbieInvestor88 (Feb 21, 2021)

kcowan said:


> My equity is 50% US with a tech tilt (only FAANG is AAPL). Canada is lacking in health care, heavy on banks. All of my 12% fixed in Canadian.


Health care and tech.


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## depassp (Mar 22, 2020)

I have an overall portfolio target of 25% to Canada. All my Canadian stocks are in my taxable margin account, mostly for the DTC.

I plan to achieve my asset allocation targets using a mix of individual Canadian stocks (unfortunate choices early in my investing career), then XEQT, XAW, VFV and XEM to fixup the remaining


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