I’m a Canadian Investor Holding US Stocks: What Should I Check?
Canadians who own US stocks carry three risks a US investor does not: currency, the wrong benchmark and US tax withheld on dividends. Here is what to check, with crash numbers converted to dollars.
Key takeaways
- Check four things: how much of your money is in US dollars, whether you compare yourself with the right benchmark, which account holds your US dividend payers, and what a crash would cost you in dollars.
- Currency moves alone change your result. Illustrative: if the US dollar falls 10% against the loonie, C$120,000 of US holdings loses C$12,000 in Canadian dollars with no change in share prices.
- Canadian large caps did not cushion US crashes. In Exent’s data, the iShares MSCI Canada ETF (EWC) fell 62.1% in 2007–09, against 56.5% for the S&P 500.
- Under the Canada–US tax treaty, US dividends are generally exempt from US withholding in an RRSP but not in a TFSA, where up to 15% is withheld.
- I’m Canadian and hold US stocks. What matters most?
- What should a Canadian investor with US stocks check?
- Did Canadian stocks protect me when US stocks fell?
- How much does the exchange rate affect my returns?
- Should US stocks go in my TFSA or RRSP?
- Common mistakes Canadians make with US stocks
- How can I check all my accounts together?
I’m Canadian and hold US stocks. What matters most?
What matters most is that you measure the portfolio as one whole, in one currency, against a fair yardstick. Most Canadians hold a mix: TSX banks and energy names, US tech stocks, and a few ETFs spread over a TFSA, an RRSP and a taxable account at Wealthsimple, Questrade or a bank broker. Each account looks fine on its own. The risks show up when you add them together.
There are three layers. Market risk is the same as for anyone. Currency risk comes from owning assets priced in US dollars. Tax drag depends on which account holds which security. A good check covers all three.
What should a Canadian investor with US stocks check?
- Your US-dollar share: the percent of the total held in US-listed stocks and ETFs, across every account.
- Your home bias: the percent in Canadian stocks, and how concentrated it is in banks and energy.
- The benchmark: a blend that matches your Canada / US / bond mix, not the S&P 500 alone and not the TSX alone.
- Account placement: which account holds your US dividend payers, and what is withheld there.
- Crash loss in dollars: replay 2008, 2020 and 2022 on today’s holdings.
- Overlap: a Canadian bank stock next to a Canadian bank ETF is one bet, not two.
- Reporting: whether the cost of your foreign property outside registered accounts is above the CRA’s T1135 threshold.
Did Canadian stocks protect me when US stocks fell?
Not in the big crashes. Canadian large caps fell about as much as US stocks, and sometimes more. The table uses peak-to-trough declines from Exent’s data, as of Sep 30, 2026, for SPY (the S&P 500) and EWC (an ETF of large Canadian companies). Both trade in New York, so the figures are in US dollars. The dollar column is illustrative: C$100,000 held in each.
| Crisis | S&P 500 (SPY) | Canada (EWC) | On C$100,000: SPY | On C$100,000: EWC |
|---|---|---|---|---|
| Global financial crisis, 2007–09 | −56.5% | −62.1% | −C$56,500 | −C$62,100 |
| Trade-war selloff, 2018 | −20.2% | −20.7% | −C$20,200 | −C$20,700 |
| COVID crash, 2020 | −34.1% | −42.7% | −C$34,100 | −C$42,700 |
| Inflation bear market, 2022 | −25.4% | −25.4% | −C$25,400 | −C$25,400 |
| Tariff selloff, 2025 | −19.0% | −12.0% | −C$19,000 | −C$12,000 |
- Global financial crisis, 2007–09
- S&P 500 (SPY)
- −56.5%
- Canada (EWC)
- −62.1%
- On C$100,000: SPY
- −C$56,500
- On C$100,000: EWC
- −C$62,100
- Trade-war selloff, 2018
- S&P 500 (SPY)
- −20.2%
- Canada (EWC)
- −20.7%
- On C$100,000: SPY
- −C$20,200
- On C$100,000: EWC
- −C$20,700
- COVID crash, 2020
- S&P 500 (SPY)
- −34.1%
- Canada (EWC)
- −42.7%
- On C$100,000: SPY
- −C$34,100
- On C$100,000: EWC
- −C$42,700
- Inflation bear market, 2022
- S&P 500 (SPY)
- −25.4%
- Canada (EWC)
- −25.4%
- On C$100,000: SPY
- −C$25,400
- On C$100,000: EWC
- −C$25,400
- Tariff selloff, 2025
- S&P 500 (SPY)
- −19.0%
- Canada (EWC)
- −12.0%
- On C$100,000: SPY
- −C$19,000
- On C$100,000: EWC
- −C$12,000
Over the 60 months to September 2026, EWC’s correlation with SPY was 0.82, so the two usually moved together. Over ten years, EWC compounded at 10.8% a year against 15.2% for SPY. That gap is past performance in US dollars, not a forecast. Why a home tilt can help or hurt is covered in international diversification.
How much does the exchange rate affect my returns?
Enough to swing a year. When you own a US stock, you own two things: the company and the US dollar. If the US dollar weakens against the Canadian dollar, your US holdings are worth fewer Canadian dollars even if their share prices did not move.
Illustrative: a C$200,000 portfolio with 60% in US-listed holdings has C$120,000 of US-dollar exposure. A 10% fall in the US dollar against the loonie costs C$12,000. A 10% rise adds about the same. Some Canadians hedge with CAD-hedged ETFs; others accept the swings. Either way, know the number. See how much dollar exposure you have.
Should US stocks go in my TFSA or RRSP?
For US dividends, the account matters. The Canada–US tax convention caps US withholding on portfolio dividends at 15% (Article X) and exempts dividends paid to qualifying retirement arrangements (Article XXI). RRSPs and RRIFs are generally treated as such; TFSAs are not.
| Account | US dividends from US-listed holdings | What to know |
|---|---|---|
| RRSP / RRIF | Generally no US withholding | Applies to US-listed securities held directly; a Canadian-listed fund that holds US stocks still bears withholding inside the fund |
| TFSA | Up to 15% withheld | A TFSA is not treated as a retirement plan under the treaty, and the tax withheld is generally not recoverable |
| Taxable (non-registered) | Up to 15% withheld | You may be able to claim a federal foreign tax credit on Form T2209 |
Two more points. The CRA requires Form T1135 when the total cost of specified foreign property, such as shares of US companies, exceeds C$100,000; holdings in an RRSP or TFSA are excluded. And the foreign tax credit rules have conditions. This is general education. A Canadian tax professional, ideally one who handles cross-border holdings, can confirm what applies to you.
Common mistakes Canadians make with US stocks
- Judging by the S&P 500 alone. A portfolio that is half Canadian should be compared with a blend. See risk-matched benchmark.
- Looking at each account separately. Three tidy accounts can add up to one big bet on banks or tech.
- Ignoring currency in the result. A good year in US dollars can be a flat year in Canadian dollars.
- High-yield US payers in a TFSA by default. The withholding is a steady drag that is easy to miss.
How can I check all my accounts together?
Put every account into one view, in one currency, so concentration, correlation and crash replays compare like with like. A view in US dollars will differ from your Canadian-dollar result by the currency move. Check that a tool reads TSX listings (usually with a .TO suffix); Exent’s coverage is listed under supported markets.
How to combine Canadian accounts in Exent
- Upload a screenshot or file from Wealthsimple, Questrade or a bank broker (CSV, Excel, PDF or Google Sheet); no brokerage login.
- Exent reads TSX listings with their .TO suffix and shows the combined portfolio in US dollars.
- It shows concentration, correlation clusters and crash replays across all accounts; analyst rankings are deepest for US‑listed stocks.
Frequently asked questions
Use one view that combines every account and converts everything to a single currency. Then check your US-dollar share, concentration, crash losses and a blended benchmark, not the S&P 500 alone.
Generally yes. The Canada–US tax treaty does not treat a TFSA as a retirement plan, so up to 15% of US dividends is usually withheld and generally cannot be recovered. A tax professional can confirm your case.
Generally no, for US-listed securities held directly. The treaty exempts dividends paid to qualifying retirement arrangements, which include RRSPs and RRIFs. Canadian-listed funds that hold US stocks still bear withholding inside the fund.
Not usually. In Exent’s data, the iShares MSCI Canada ETF fell 62.1% in 2007–09 and 42.7% in the 2020 COVID crash, against 56.5% and 34.1% for the S&P 500, measured in US dollars.
Yes. You upload a screenshot or file of your holdings from any broker, and Exent never asks for a brokerage login. The analysis is shown in US dollars.
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Educational content, not investment advice. Examples are illustrative; past performance does not guarantee future results.