Canada Investment in Foreign Securities Rebounds

Canadian investors acquired C$23.9 billion in foreign securities in August 2026, following a divestment of C$30.6 billion in July. Investors resumed purchases of US equities, acquiring C$28.9 billion worth of shares. In contrast, Canadian investors reduced their holdings of US federal government bonds by C$8.6 billion. This divestment was partly offset by investments in foreign bonds denominated in Canadian dollars (+C$2.7 billion) and US federal government securities (+C$1.8 billion). During the first eight months of 2026, Canadian investors acquired a record C$76.0 billion worth of US shares, compared with C$52.6 billion over the same period in 2025. Investors have largely targeted large-cap technology stocks so far this year.

Canadian investors reduced their exposure to foreign securities by C$30.6 billion in July 2026, after increasing it by C$35.43 billion in June. They sold an unprecedented C$31.0 billion of US shares, following C$78.1 billion in purchases during the first half of 2026. The July divestment was mainly concentrated in shares of large US technology companies. US share prices, as measured by the S&P 500 Composite Index, edged down in July after recording strong gains earlier in the year. Meanwhile, Canadian investors reduced their holdings of US government bonds by C$5.1 billion, marking a sixth consecutive monthly divestment and bringing the total since January to C$37.3 billion. The overall outflow was partially offset by purchases of US corporate bonds (+C$1.8 billion) and non-US foreign bonds (+C$3.3 billion). In July, US long-term interest rates rose, while the US dollar depreciated against the Canadian dollar.