Investing Abroad for CanadiansInvesting Abroad for Canadians
The Canadian market is a great place to invest, but it’s not the only one. Global markets offer access to economic sectors that may be underrepresented in the domestic market – such as technology or health care. These types of investments are often best suited to exchange traded funds (ETFs) or mutual funds which can help provide easy access and diversification of international stocks for the average self-directed investor. Read more ex-ponent.com
Foreign investment in Canada is regulated by the Investment Canada Act (ICA). The Government of Canada screens proposed foreign investments to ensure they produce a net benefit to Canada and does not jeopardize national security. Foreign ownership of companies in sensitive industries such as health and natural resources is subject to enhanced scrutiny, and transactions can be reviewed on national security grounds.
Investing Abroad for Canadians: What You Need to Know About Offshore Investments
Investment in Canada by foreign investors increased in 2024 to $2,472.5 billion. Mergers and acquisitions, earnings reinvested in existing foreign affiliates and valuation gains from a weaker Canadian dollar were significant drivers. The United States remained the top destination for Canadian investment abroad, with Canadian holdings of overseas companies in that country rising to $1,289.3 billion at the end of 2024.
Investing in foreign currencies can be risky. The exposure to fluctuations in the value of a currency reduces returns, as exchange rates typically depreciate over time. The risk of political instability also increases in emerging markets, and investing in these countries may require a higher level of due diligence.…