Canadian investors ditched U.S. stocks at a record pace in July — SkimNews
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- Canadian investors sold $31 billion of U.S. stocks and equity funds in July, the largest monthly net exodus from American markets ever recorded, surpassing even the March 2020 pandemic-driven pullback
- Statistics Canada noted the July divestment was concentrated in large-cap tech stocks, with the Nasdaq Composite ending the month down 2.6% — though that benchmark posted worse monthly returns three other times in 2025
- Canadian investors had been net buyers of U.S. equities earlier in 2025, snapping up $78.1 billion during the first six months before sharply reversing course in July
- U.S. Treasury securities data show Canada was an outlier globally in July: net purchases of U.S. equities by Canadians plunged US$59.6 billion, while the rest of the world was a net buyer of US$62 billion
- The Globe and Mail downplayed a patriotic backlash to U.S. tariffs as the driver, pointing instead to stronger returns in Canadian energy and banking stocks that month
Why it matters: The $31 billion July selloff flips a half-year trend of Canadian buying into American markets and isolates Canada as the only major puller-back, suggesting domestic equity rotation rather than broad anti-U.S. sentiment — though the data captures the month new tariffs were announced, leaving motive unsettled.
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