Canadian equities outpaced their US counterparts in the second quarter of 2025, with the Morningstar Canada Index gaining 8.1 per cent compared to 5.4 per cent for the Morningstar US Index, helped by defensive valuations and a heavy weighting toward financials. Ben Jang, Portfolio Manager at Nicola Wealth, weighed in on the shift, pointing to multi-front trade tensions as a key reason investors are rotating into markets like Canada's, which started the year with more attractive valuations. He added that in today's lower-growth environment, Canada's abundance of higher-dividend-paying companies gives it a more defensive position relative to other markets.
Read more: Canadian Stocks Continue Rally in Q2, Outperforming the US Market | Morningstar
