Canadians Shift Wealth to Tech Stocks Over Housing
Canadians have seen a rapid rise in financial assets, driven by the technology and artificial-intelligence surge, while housing wealth has leveled off. “Canadian wealth has really shifted from the driveway to the brokerage,” said Theresa Shutt, chief investment officer at Harbourfront Wealth Management.
The shift reflects a broader move away from paycheck-based savings toward market-linked growth. Advisors say the next decade will reward investors who focus on sectors with durable demand rather than chasing short-term hype.
Tech, AI and diversified exposure
Stocks remain the primary engine of wealth creation, and the technology sector now dominates global markets. “There’s probably going to be a lot of progress and good investment opportunities within the technology sector, which is now the largest sector on a global basis,” noted Josh Sheluk, portfolio manager at Verecan Capital Management Inc.. He cautioned against chasing every AI-related headline.
Sheluk illustrated a balanced approach: investors could pair memory-chip holdings with software firms that may thrive even if AI hype fades. Shutt added that modestly priced AI plays in Asia, along with supporting infrastructure such as cooling systems and grid equipment, offer attractive entry points.
Banking, utilities and dividend stability
Beyond tech, Shutt highlighted Canadian banks and utilities as “bright spots.” She called them longer-term holds that pay dividends and stand to benefit from anticipated infrastructure expansion across the country.
Real estate, by contrast, is unlikely to repeat the strong returns of the 2010s. “I wouldn’t expect real estate to have some tremendous recovery and deliver the returns that it had through the 2010s in Canada,” said Sheluk. He noted that renters can still build wealth by contributing regularly to investment accounts.
Jason Heath, managing director at Objective Financial Partners, said a disciplined renter who saves each month can accumulate a sizable portfolio without ever owning property.
Shutt affirmed that home ownership still provides “forced savings,” but warned that condos have lost appeal due to higher borrowing costs and excess supply. “Condos used to be the entry point for small investors, but that thesis has broken due to higher borrowing costs and a glut of supply,” she said.
Today’s investors must balance property exposure with broader asset classes to sustain growth. Private-equity, credit, real-estate and infrastructure funds have opened new doors for ordinary investors, often through publicly traded vehicles. While these options broaden exposure, they come with reduced liquidity, higher fees and less transparency, Sheluk explained.
“Today, private companies are trading at a discount compared to public companies where the valuations are at peak highs so there is an opportunity for attractive returns going forward,” Shutt said.
Commodities have also posted solid gains. Shutt pointed to copper and silver for industrial use, lithium for AI data-centre construction, and uranium as nuclear power emerges as a clean energy source for data centres.
Philip Petursson, chief investment strategist at IG Wealth Management, noted that gold, while exited from short-term positions, could still serve as a long-term hedge tied to rising global money supply.
On energy, Petursson said oil prices are likely to stay above last year’s levels even if geopolitical tensions ease, due to infrastructure damage and a shrinking reserve base.
Because futures can be volatile, Shutt recommends funds and ETFs as a lower-cost way to access a diversified basket of commodities and producers, advising investors to keep such positions modest within a broader portfolio.
Side-hustle surge
Across age groups, a sizable share of the population now pursues secondary income streams. An October study by Ownr, operated by RBC Ventures, found that almost half of Canadians are engaged in a side hustle or plan to start one. The same research indicated that 39 percent cite the need to supplement income as their primary motivation.
Younger individuals often monetize hobbies such as graphic design, crafting, or content creation, while older Canadians approaching retirement use side projects to stay active and maintain cash flow. Advisors note that regular contributions from these ventures can be directed into investment accounts, accelerating wealth accumulation without relying on property appreciation.
Private-market considerations
Oil market outlook points to sustained price levels above the previous year’s averages. Damage to extraction infrastructure and a notable drawdown of reserves limit supply, meaning even a rapid geopolitical de-escalation would likely keep prices high.
Direct futures contracts expose investors to sharp price swings and complex margin requirements. Consequently, many advisers favor commodity-focused funds and exchange-traded products, which bundle diverse producers and reduce transaction costs while delivering broader market participation.
