8,5% VS 11,8% is the difference between the annual return of an investment on the TSX\S&P500 composite and the same investment on the S&P500 on a 39 years period (1979-2018).
Click on this link to see the reference: https://www.taxtips.ca/stocksandbonds/investmentreturns.htm
I don’t understand why some people don’t buy american stocks.
The best stocks are there and the exchange rate has almost an unsignificant impact on the long term. So why not putting all the chances on your side and hunt on the American market?
Of course there’s a few exceptional Canadian stocks, but apart these 8-10 great stocks, in my opinion, you should look south of the border. Try it, it won’t harm you. You’ll feel a little weird at first but you’ll get used to it.
And these supplimentary 3,3% will make an important difference on the long term. A much bigger difference than the exchange rate.