At a time of rising economic uncertainty, about one-quarter of Canadians say they would be willing to take on greater risk for a potential boost to their investment returns, according to a survey from Global X Investments Canada Inc.
Released Tuesday, the survey of more than 1,000 Canadians found that 27% of respondents were willing to take on more risk to meet their financial goals in the current economic climate.
The portion of younger investors — those between the ages of 18 and 25 — willing to take on more risk was even higher, standing at 41%. Meanwhile, just 12% of respondents above the age of 56 said they were willing to invest in riskier assets.
“Whether an investor is looking to hedge their portfolio or take advantage of market pullbacks, we’re seeing much more openness to taking on alternative investment strategies which may help overcome barriers compared to traditional strategies,” said Chris McHaney, executive vice-president, head of investment management and strategy with Global X, in a news release.
The top reason investors cited for their willingness to take on greater risk was to achieve their financial goals faster (30%), followed by acting on recommendations from trusted sources (28%).
Nearly half of respondents (45%) indicated that they believe the economy is in decline and 35% expressed less confidence in meeting their financial goals compared to a year ago.
The poll also asked investors how they expected politics to impact markets.
It found that 35% of respondents viewed the potential of a federal election as an opportunity for increased returns, while 19% saw it as leading to less opportunity.
Canadian respondents were split on how U.S. President Donald Trump’s return to office would impact their investments. About 34% said they saw more opportunity for returns, while 33% said they saw less opportunity during a second Trump presidency.
The online survey was conducted by Global X from Dec. 16–19, 2024. It involved a sample of 1,013 Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. It did not offer a comparison to any other time period, so it’s not clear if risk appetite is growing or shrinking.
For comparison purposes, a probability sample of this size would carry a margin of error of plus or minus 3.1 percentage points, 19 times out of 20.