Amid ongoing tariff talks and discussions of Canada becoming the 51st state, the “Buy Canadian” movement has gained momentum across the country, with consumers choosing to buy products made in Canada or from businesses based in Canada to support homegrown operations. An Angus Reid poll from February 2025 found that 85 per cent of respondents planned to replace, or have already replaced, as many U.S. products as they could with Canadian ones in their shopping.

But could you also “Buy Canadian” for your personal investments and the stocks and funds you choose for your portfolio? It’s an idea that has some support. In the run-up to the 2025 federal election, Conservative leader Pierre Poilievre is even proposed increasing the annual limit on TFSA contributions by $5,000 for funds invested in Canadian companies.

But Chay Ornthanalai, an associate professor of finance at the Rotman School of Management, warns a made-in-Canada investment strategy is not straightforward. First, it can be difficult to determine what counts as a Canadian company. “It's a very subjective definition,” he says. A "Buy Canadian” investment strategy could vary in its parameters, which could include companies that were founded in Canada, have Canadian origins, are located in any part of Canada, hire primarily Canadians, manufacture products in Canada or brand themselves as having Canadian heritage (such as Tim Hortons). “Some people say it has to be founded by Canadians,” says Ornthanalai. “And then you have foreign companies that are mostly located in Canada, but they are not Canadian.”

While Ornthanalai says that buying end-products or services from Canadian companies can have a positive impact on their operations, buying stocks from that company doesn’t have the same impact. “It will drive the share price up if enough people are buying it,” he says. “But the stock price goes up everywhere, so everyone else who also owns those Canadian stocks, whether they’re American or somewhere else in the world, also benefits. It doesn't just benefit Canada.”

Ornthanalai also worries that increases in share prices caused by a Buy Canadian movement wouldn’t be long lasting. “People are doing it based on short-term patriotism,” he says. “It will deviate from what the stock is actually worth. It would create a bubble and it would become overvalued.” But Ornthanalai says the influence of “average Joe” investors buying stocks in Canadian companies or homegrown funds would be minimal. “The trading volume that we command is very small,” he says. “Unless you’re a large pension fund, it’s hard to have a larger impact.”

Buying Canadian also means having to sell something else, which Ornthanalai says can reduce diversity in your portfolio, thus increasing risk. “As an individual investor, the key is to always make sure you diversify,” he says. “If you're throwing all your eggs into the same basket, there’s no diversification.” He believes it’s especially concerning for retail investors who are investing long-term, such as for retirement. “The political climate changes all the time,” Ornthanalai notes. “To fundamentally shift your portfolio in a drastic way in response to something that will last just a business cycle might not be the most prudent thing in terms of long-term investing.”

Should a retail investor still insist on shifting their portfolios to Canadian companies, Ornthanalai says that they should research which company stocks they want to buy and whether they meet the level of “Canadianness” desired before purchasing them. Another way to make the shift would be to purchase Canadian exchange-traded funds (ETFs). “There are many ETFs that focus on Canadian companies,” he says. “You can buy the TSX ETF, which covers the 60 top Canadian companies, or you can focus on an ETF that is a Canadian bank.”

Ornthanalai says that one benefit of the Buy Canadian movement could be increased awareness and international attention on Canadian companies worth watching. “I think a lot of Canadian companies are under the radar by investors,” he says. “For example, Thomson Reuters is a Canadian company and it’s one of the biggest communication companies in the world,” explains Ornthanalai. “But most people don't even know it’s Canadian.” He believes that informing international friends and family about worthwhile Canadian companies can help them succeed. “I think it's good to raise the profile of Canadian firms and companies,” Ornthanalai says. “We can make the world know that a lot of innovative companies originate in this country.”

Ultimately, Ornthanalai says that the most effective method for an investor to support the Buy Canadian movement is still to spend their dollars purchasing end products or services that the company makes. “It’s the best way to do it if you want to show patriotism,” he says.