How pro money managers are balancing exposure to Canadian and U.S. stocks

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A look at one of the best investing products around these days

These exchange-traded funds are cheap to own, simple to buy and transparent in their construction. Many of the country’s biggest investment companies offer asset allocation ETFs, which means the portfolio mixes they use are indicative of current thinking on how to blend stocks from around the world.

What we find when we pop the hood on these ETFs is that while we may live, invest and ultimately spend our money in Canada, the U.S. stock market is of primary interest. Canada ranks a distant second to the U.S. market, with exposure levels comparable to stock markets outside of North America. Let’s see how a few balanced asset allocation ETFs handle their global stock market exposure. Balanced means 60 per cent of the portfolio is in stocks, with 40 per cent in bonds.

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