Canadian investors think they’re diversified – new data says otherwise
The findings present a clear challenge for financial advisors: a client who feels protected may not be asking the right questions.
The gap between confidence and understanding
The concept of diversification has long been shorthand in financial planning for spreading risk across sectors, geographies and asset classes. But as a small number of large companies, many of them tied to technology and artificial intelligence, now account for a growing share of major global indices, owning a broad basket of funds no longer guarantees the spread of risk it once implied.
Robert Wilson, Head of Innovation and Portfolio Strategist at PICTON Investments in Toronto, pointed to the distinction between knowing you’re diversified and understanding what that means today.
“Diversification is about more than the number of investments in a portfolio,” Wilson said. “As markets become more concentrated, investors need to understand not only what they own, but the risks that may exist beneath the surface of a seemingly diversified portfolio.”
The survey, which polled 1,968 Canadian investors between August 6 and 14, 2026, found a pronounced awareness gap along generational lines. Among investors aged 18 to 34, 68 per cent said they were familiar with index concentration. Among those 55 and older, that figure dropped to just 46 per cent, a demographic that, for many advisors, represents a significant portion of their client base.
