Foreign investments

Canada is a big place geographically, but it makes up only 3% of world investment markets. By limiting yourself to Canadian investments in your RRSP, you're effectively cutting yourself off from 97% of the world's investment opportunities. Recognizing the importance of foreign investing, the 2005 federal budget lifted restrictions on the amount of foreign content allowed in RRSPs.

Investing in foreign markets gives you another important benefit: diversification. Global markets tend not to move in the same direction at the same time. So, by holding a variety of investments, from a variety of international markets, you reduce your exposure to a downturn in any one area.

Venturing beyond Canada’s border

Picking individual foreign investments can be a tricky business. But there are simple ways to invest globally too.  Ask a Vancity investment professional if choices like these* suit your risk profile:

  • mutual funds which invest in many geographic areas
  • exchange-traded funds that track a foreign market index
  • Canadian bonds denominated in a foreign currency, or mutual funds owning foreign-currency bonds
  • Canadian companies with foreign interests, or mutual funds holding businesses with foreign interests

A Vancity investment professional can help you review the foreign content of your RRSPs. To speak with an investment professional contact us at 604.709.5955, visit your local branch or in your neighborhood.