2021
8
Canada Attitudes towards Investing Market Report 2021
2021-07-03T04:16:53+01:00
OX1046039
3695
140029
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Report
en_GB
“Soaring financial and real estate markets are raising inflationary concerns which might lead to an increase in interest rates. This increase is likely to stretch mortgage owners and lead to…

Canada Attitudes towards Investing Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“Soaring financial and real estate markets are raising inflationary concerns which might lead to an increase in interest rates. This increase is likely to stretch mortgage owners and lead to a spill-over effect on the broader economy and stock market.”

– Sanjay Sharma, Senior Financial Services Analyst

This Report looks at the following areas:

  • The impact of COVID-19 on attitudes towards investing.
  • This Report also covers consumer attitudes and behaviour related to attitudes towards investing. It examines product ownership, interest in new investing strategies, human vs digital financial advice, attitudes towards risk, investing knowledge and attitudes towards financial planning.

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
        • Executive Summary

            • Top takeaways
              • Market overview
                • Impact of COVID-19 on investing
                  • Figure 1: Short-, medium- and longer-term impact of COVID-19 on investing, June 2021
                • Opportunities
                  • Home equity is increasingly becoming a part of retirement planning
                    • Fractional share ownership is an antidote to insufficient funds
                      • COVID-19 spurs online investing, particularly among younger investors
                        • Challenges
                          • Women have a lower risk tolerance
                            • Both human and robo-advisors have their place
                            • The Market – Key Takeaways

                              • Impact of COVID-19 on attitudes towards investing
                                • Canada’s 2021 Budget, current economic projections and its impact on investing
                                  • Cryptocurrencies gain traction
                                    • Mutual fund and ETF sales boom
                                    • The Market – Market Factors

                                      • Impact of COVID-19 on attitudes towards investing
                                        • Canada’s 2021 Budget, current economic projections and its impact on investing
                                            • Figure 2: Canada unemployment rate, by age, January 2020 to April 2021
                                          • Households sitting on a huge pile of cash
                                            • Cryptocurrencies gain traction
                                              • Non-fungible tokens
                                                • ESG investing continues its record growth
                                                  • Mutual fund and ETF sales boom
                                                  • Apps & Tools

                                                    • Select investing apps (Canada)
                                                      • Hardbacon
                                                        • Simply Wall St
                                                          • Investing.com
                                                            • VectorVest
                                                              • Wealthica
                                                                • Investmate
                                                                  • Wealthbase and Invstr
                                                                    • Financial planning and advice apps (Big Banks)
                                                                      • TD launches new student budgeting tool developed “for students, by students”
                                                                        • TD launches new financial planning and investing app
                                                                          • Figure 3: Find your beginning with TD GoalAssist, October 2020
                                                                        • Scotiabank launches Advice+, a digital, financial planning centre
                                                                          • Figure 4: Scotiabank – It’s You, Plus, September 2020
                                                                          • Figure 5: Scotiabank Advice+ Facebook ads, September 2020
                                                                        • CIBC launches new platform to help clients build their financial plans
                                                                          • Figure 6: CIBC GoalPlanner Facebook ad, January 2021
                                                                      • Companies and Brands – Key Takeaways

                                                                        • New products
                                                                          • Canada approves world’s first set of Ether ETFs for retail investors
                                                                            • Mackenzie and Wealthsimple introduce Shariah-compliant ETF
                                                                              • Emerge Canada debuts first-ever space exploration ETF on NEO Exchange
                                                                                • Other news
                                                                                  • Ontario joins others in banning mutual fund early withdrawal fee
                                                                                    • Mogo purchases 37% stake in Coinsquare and acquires Fortification Capital
                                                                                    • Competitive Strategies

                                                                                      • New products
                                                                                        • Canada approves world’s first set of Ether ETFs for retail investors
                                                                                          • Figure 7: CI investments mobile ad, April 2021
                                                                                        • Mackenzie and Wealthsimple introduce Shariah-compliant ETF
                                                                                          • Emerge Canada debuts first-ever space exploration ETF on NEO Exchange
                                                                                            • Cult Wines expands into Canada, offering fine wine investing
                                                                                              • Fidelity (US) launches its Youth Account
                                                                                                • Other news
                                                                                                  • Ontario joins others in banning mutual fund early withdrawal fee
                                                                                                    • Mogo purchases 37% stake in Coinsquare and acquires Fortification Capital
                                                                                                      • Figure 8: Mogocrypto Facebook Ad, January 2021
                                                                                                  • Marketing Campaigns

                                                                                                    • Tangerine enters a new partnership with the WBNA to reach women and express its value
                                                                                                      • Figure 9: Tangerine Mobile ad for ETFs, May 2021
                                                                                                    • Direct and robo-investing campaigns
                                                                                                      • Figure 10: TD Direct Investing | Invest your way, October 2020
                                                                                                      • Figure 11: BMO adviceDirect Facebook, May 2021
                                                                                                      • Figure 12: CI direct investing Facebook Ad, March 2021
                                                                                                      • Figure 13: Evening walk, January 2021
                                                                                                      • Figure 14: See the difference performance makes, April 2021
                                                                                                    • The use of TikTok in investment marketing
                                                                                                    • The Consumer – What You Need to Know

                                                                                                      • Over two thirds own an investment product
                                                                                                        • Lack of funds and lack of knowledge are the main barriers to investing
                                                                                                          • Majority consider cryptocurrencies to be too risky to invest in
                                                                                                            • More than half are comfortable with their investing knowledge
                                                                                                            • Product Ownership

                                                                                                              • Over two thirds own an investment product
                                                                                                                • Figure 15: Ownership of investment products, February 2021
                                                                                                              • Mutual funds and ETFs have record inflows
                                                                                                                  • Figure 16: Ownership of investment products, by amount of investments, February 2021
                                                                                                                • GICs and Treasury Bills are owned by a third of affluent consumers; one in ten owns bonds
                                                                                                                  • Real estate investing spikes among affluent
                                                                                                                    • Commodities have a niche appeal
                                                                                                                      • Age influences product ownership
                                                                                                                        • Figure 17: Ownership of investment products (select), by age, February 2021
                                                                                                                      • Annuities and whole life insurance are insurance type investment products
                                                                                                                        • Microcap stocks appeal more to younger investors
                                                                                                                          • Financial advisors can steer women to the “middle ground” of risk
                                                                                                                            • Figure 18: Ownership of investment products, women vs men, February 2021
                                                                                                                          • Cryptocurrencies are more of a “young male” investment
                                                                                                                            • Figure 19: Wealthsimple Facebook Ad, October 2020
                                                                                                                          • Lack of funds and lack of knowledge are the main barriers to investing
                                                                                                                            • Figure 20: Reasons for not having an investment account, February 2021
                                                                                                                          • Fractional share ownership could be an antidote to insufficient funds
                                                                                                                            • How can the industry help overcome barriers?
                                                                                                                              • Figure 21: Reasons for not having an investment account, by age, February 2021
                                                                                                                              • Figure 22: Moka Instagram post, March 2021
                                                                                                                          • Investing Strategies

                                                                                                                            • Consumers interested in a number of investment categories
                                                                                                                              • Figure 23: Interest in new investment types, February 2021
                                                                                                                            • A third of young men are interested in cannabis investing
                                                                                                                              • Figure 24: Interest in cannabis industry, by age and gender, February 2021
                                                                                                                              • Figure 25: Interest in new investment types, by age, February 2021
                                                                                                                              • Figure 26: Charles Schwab Facebook ad, March 2021
                                                                                                                            • A quarter of affluent are interested in crowd-funded real estate
                                                                                                                              • Figure 27: addy Instagram post, June 2021
                                                                                                                            • Interest in early-stage start-ups and cryptocurrencies skew younger
                                                                                                                              • Figure 28: Interest in new investment types (select), by amount of investments, February 2021
                                                                                                                            • ESG investing appeals to a fifth of investors
                                                                                                                              • A fifth of investors prefer passive investing
                                                                                                                              • Risk Tolerance

                                                                                                                                • Overall
                                                                                                                                  • Majority consider cryptocurrencies to be too risky to invest in
                                                                                                                                    • Figure 29: Attitudes related to risk tolerance, February 2021
                                                                                                                                  • Youth is synonymous with aggressive
                                                                                                                                    • Figure 30: Attitudes related to risk tolerance (% agree), by age, February 2021
                                                                                                                                    • Figure 31: Mogo Bitcoin Facebook ad, November 2020
                                                                                                                                  • Men have a higher risk tolerance
                                                                                                                                    • Figure 32: Attitudes related to risk tolerance (% agree), men vs women, February 2021
                                                                                                                                  • Affluent are less pained by losses
                                                                                                                                    • Figure 33: Attitudes related to risk tolerance (% agree), by amount of investments, February 2021
                                                                                                                                • Financial and Retirement Planning

                                                                                                                                  • Majority have a long-term financial plan
                                                                                                                                    • Figure 34: Attitudes related to financial and retirement planning, February 2021
                                                                                                                                  • Home equity is increasingly becoming a part of retirement planning
                                                                                                                                    • Figure 35: Attitudes related to financial and retirement planning (% agree), 18-44s vs over-45s, February 2021
                                                                                                                                    • Figure 36: Conversation Stoppers with Doris | HomeEquity Bank, May 2021
                                                                                                                                  • Affluent consumers are more dependent on investment performance
                                                                                                                                    • Figure 37: Attitudes related to financial and retirement planning (% agree), by amount of investments, February 2021
                                                                                                                                  • Affluent are more positive about financial advisors
                                                                                                                                  • Investing Knowledge

                                                                                                                                    • More than half are comfortable with their investing knowledge
                                                                                                                                      • Figure 38: Attitudes relating to investing knowledge, February 2021
                                                                                                                                    • Men, affluent and older investors more comfortable with their knowledge level
                                                                                                                                      • Figure 39: Attitudes relating to investing knowledge (% agree), men vs women, February 2021
                                                                                                                                      • Figure 40: Paytm Instagram post, June 2021
                                                                                                                                    • Affluent investors are more sophisticated
                                                                                                                                      • Figure 41: Attitudes relating to investing knowledge, by amount of investments, February 2021
                                                                                                                                  • Financial Advice and Fees

                                                                                                                                    • Strong preference for human vs robo-advisors
                                                                                                                                      • Figure 42: Attitudes related to financial advice and fees (% agree), February 2021
                                                                                                                                    • Both human and robo-advisors have their place
                                                                                                                                      • Figure 43: Attitudes related to financial advice and fees (% agree), 18-44s vs over-45s, February 2021
                                                                                                                                    • High Canadian fees remain an issue but robo-advisors need to attract the affluent to capitalize
                                                                                                                                      • Significant interest in online brokerages, more so among younger and male investors
                                                                                                                                        • Figure 44: RBC direct investing Facebook ad, May 2020
                                                                                                                                        • Figure 45: Attitudes related to financial advice and fees (% agree), women vs men, February 2021
                                                                                                                                    • Impact of COVID-19 on Investing Behaviours

                                                                                                                                      • COVID-19 has triggered increased investor activity
                                                                                                                                        • Figure 46: COVID-19 related investment behaviours, February 2021
                                                                                                                                      • Younger investors and affluent more active
                                                                                                                                        • Figure 47: COVID-19 related investment behaviours (select), by age, February 2021
                                                                                                                                        • Figure 48: COVID-19 related investment behaviours (select), by amount of investments, February 2021
                                                                                                                                    • Appendix – Data Sources and Abbreviations

                                                                                                                                      • Data sources
                                                                                                                                        • Consumer survey data
                                                                                                                                          • Abbreviations and terms

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