Majority call their portfolios well diversified, while just a few hold alternatives
Fifty-seven percent of Canadian investors said they were familiar with index concentration, while 83 percent said they were confident their portfolios were well diversified.
According to results of an August 2026 online survey that Pollara Strategic Insights conducted for PICTON Investments, 67 percent of respondents said they were concerned about market volatility affecting their investments over the next 12 months.
Familiarity with index concentration rose to 68 percent among investors aged 18 to 34 and fell to 46 percent among those aged 55 and older.
Among investors familiar with index concentration, 88 percent said they were confident in their portfolio diversification, compared with 67 percent among investors completely unaware of the issue.
Canadian investors are approaching markets with confidence, but confidence does not always mean understanding, Robert Wilson, head of innovation and portfolio strategist at PICTON Investments, said in the release.
Wilson said diversification involves more than the number of investments in a portfolio, and concentrated markets require investors to understand what they own and the risks beneath the surface.
The release stated that a relatively small number of companies now account for an increasingly significant share of major global stock market indices.
Mutual funds, GICs, stocks and ETFs were the most commonly held investments among Canadian investors surveyed.
Eight percent reported holding alternative investments.
Thirty-one percent said they were familiar with alternative strategies such as hedge funds and liquid alternatives, while 60 percent said they would like to learn more about how alternative investment strategies could affect their portfolios.
Asked what would make them more comfortable considering alternatives, 25 percent cited a better understanding of the risks and benefits, 22 percent cited a recommendation from their financial advisor, and 20 percent cited more education about how they work.
Investors want to understand how portfolios can be built for current market conditions, Macan Nia, investment strategist at PICTON Investments, said in the release.
Nia said the conversation around diversification should extend past owning more stocks and bonds to how different investments contribute to portfolio construction and risk management.
PICTON Investments noted that diversification may help manage risk but does not guarantee profits or protect against losses, and that portfolios can still decline during market downturns.
Results were weighted using the latest Statistics Canada data to be representative of the Canadian population.
PICTON Investments is a Canadian investment firm with $20bn in assets under management as of August 31.
