Canadian investors reduced their exposure to foreign securities by C$30.6 billion in July 2026, following an increase of C$35.43 billion in June. They sold a record C$31.0 billion in US equities, reversing the strong buying trend that saw C$78.1 billion in purchases during the first half of 2026. July’s divestment was concentrated mainly in shares of large US technology firms. US equity prices, as measured by the S&P 500 Composite Index, edged lower in July after posting strong gains earlier in the year.
At the same time, Canadian investors cut their holdings of US government bonds by C$5.1 billion, marking a sixth consecutive month of net selling and bringing total divestment since January to C$37.3 billion. This outflow was partially offset by net purchases of US corporate bonds (+C$1.8 billion) and non-US foreign bonds (+C$3.3 billion). In July, US long-term interest rates increased, while the US dollar depreciated against the Canadian dollar.
