Canadian investors often favour homegrown investments, but a recent report warns against going all-in on domestic stocks. Canadian companies make up 2.6% of the global market but they dominate about half of Canadian investment portfolios, according to Vanguard Canada. “Canadians have a home bias,” Ashish Dewan, portfolio consultant at Vanguard Canada, told Peak Money. He pointed out that Canadians feel more comfortable about domestic companies, which makes us lean towards investing in them. Dewan cautioned that if you're younger and aiming for long-term growth, putting all your money in Canadian stocks might not be the smartest move. Having too much invested in one country means you're more exposed to risks if something goes wrong in that market, especially since Canada's market is heavily weighted in sectors like energy, banking, and materials. In Canada, the top 10 holdings make up a huge chunk of the stock market — more than 38%. Compare that to the global market, where the top 10 holdings from everywhere only make up about 12%. So if those Canadian giants take a hit, your portfolio could suffer big time. Vanguard's advice? Aim for a balanced portfolio. They suggest putting only around 30% of your equity investments in Canadian stocks, with the rest international.