Konstantin Lichtenwald on Investing in Canadian Stocks

For many years, the United States has been dominant in the stock market.

But if you’re a Canadian, you might be wondering if it’s worth it to invest in Canadian stocks. After all, the United States has the largest stock market in the world. While it’s true that the United States has the largest stock market, that doesn’t necessarily mean that it’s the best place to invest your money.

The Canadian stock market has been outperforming its American counterpart in recent years. If you’re thinking about investing in stocks, then you should consider putting some money into Canadian stocks. Konstantin Lichtenwald, Vancouver explains why Canadians and non-Canadians should consider investing in Canadian stocks.

A quick comparison of the Canadian and US stock markets

The Canadian Stock Market

The Toronto Stock Exchange (TSX) is Canada’s largest stock exchange. It is home to over 1,500 companies with a combined market capitalization of approximately CAD$3 trillion. The TSX is widely considered to be one of the strongest and most stable stock exchanges in the world.

In terms of sector breakdown, the TSX consists of energy (20%), financials (17%), materials (15%), industrials (12%), consumer discretionary (10%), healthcare (9%), real estate (4%), consumer staples (3%), and utilities (2%).

The US Stock Market

In contrast, the US stock market is much larger. The NYSE and NASDAQ exchanges are home to over 7,000 companies with a combined market capitalization of more than USD$30 trillion. The US market is also more diverse, with sectors including technology (26%), financials (16%), healthcare (13%), consumer discretionary (12%), industrials (11%), energy (9%), materials (5%), real estate (4%), and consumer staples (3%).

Some stocks appear on both stock markets

One important thing to keep in mind is that the Canadian and US stock markets are not completely isolated from one another. Many companies are listed on both exchanges. For example, Shopify Inc. is a Canadian company but it has shares that trade on both the TSX and NYSE. Consequently, events in the US can have an impact on the Canadian market and vice versa.

The Canadian stock market is less volatile than its American counterpart

This means less risk is involved in investing in Canadian stocks, which could be a good thing if you’re looking to preserve your capital. In recent years, the Canadian stock market has outperformed the US stock market. This means that if you had invested equally in both markets, you would have made more money by investing in Canada. Certain sectors of the Canadian economy are doing very well right now. For example, the technology sector is on fire, and many Canadian tech companies are seeing record profits. If you’re looking to invest in sectors with high growth potential, then Canada is worth considering.

The Canadian Stock Market is Outperforming the US Stock Market

No matter what metric you look at, the Canadian stock market outperforms the US stock market. For example, over the past 5 years, the S&P/TSX Composite Index has gained nearly 60%. Compare that to the S&P 500, which is up less than 30% over the same period. And it’s not just a recent phenomenon. Since 2010, the S&P/TSX Composite Index is up nearly 150%. That’s almost double the return of the S&P 500! If you’re looking to make money in the stock market, Canada is the place to be.

The Best Performing Sectors are in Canada

Not only is the Canadian stock market as a whole outperforming the US stock market, but Canada also has some of the best-performing sectors. For example, energy stocks are up more than 70% over the past 5 years. And it’s not just energy stocks; materials stocks are up nearly 50% over the same period. Technology stocks have also been on a tear, with companies like Shopify and BCE leading the way. If you’re looking to invest in sectors with strong growth potential, then Canada is worth considering.

A word of caution – even if a sector is doing well overall, there will always be individual stocks within that sector that are underperforming. For example, even though tech stocks have been thriving in recent months, BlackBerry’s share price has fallen by approximately 10% since September 2020.

Some of the Top Historical Stock Performers are Canadian Companies

When you think of top historical stock performers, chances are that you think of companies like Apple and Microsoft. But did you know that some of the best-performing stocks over the past few decades have been Canadian companies? For example, since 1970, shares of Bombardier have gained more than 6,000%. That’s an incredible return! And it’s not just Bombardier; shares of other Canadian companies like Barrick Gold and First Quantum Minerals have also seen their share prices skyrocket over the past few decades. If you’re looking for companies that have a history of producing outsized returns, then you should consider investing in Canadian stocks.


There are many reasons to consider investing in Canadian stocks. From outperforming markets to sectors with strong growth potential to top historical performers, Canada has a lot to offer investors. So if you’re thinking about investing in stocks, don’t forget about our northern neighbor! Remember – research is key! Before making any investment decisions, be sure to thoroughly investigate any potential companies that you’re considering putting your money into. Happy investing!

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