Hot (Money Mom) Take: You do not need US stocks to build wealth
A beginner friendly guide to Canadian investing with your values in mind
So you read my article about the S&P 500 (go you!) but you are not really into putting your money into US companies right now.
That is totally fair.
Money is personal, and investing is even more so. Your investments can and should align with your values, and I would never encourage you to ignore that inner voice telling you otherwise.
Before we go any further, let us clear up a common misconception.
When you buy a stock, mutual fund or ETF, you are not handing your money directly to the company. You are buying that investment from another investor on the market. The company already raised its capital at an earlier stage.
That said, even if your dollars are not directly funding the business, you may still feel uncomfortable profiting from companies that do not align with your values. And that feeling is valid.
For some people, this means avoiding defence companies if they do not believe in war. For others, it might mean steering clear of big pharma, tobacco, or industries whose products or practices feel misaligned with their beliefs. There is no universal right answer here: what is right for someone else might not be right for you. Also, this is not about about moral superiority, it is about personal comfort.
At the end of the day, your portfolio and your conscience should both allow you to sleep at night. And as moms, the last thing we need is another reason to lie awake staring at the ceiling.
Here is the good news: choosing to invest with your values does not mean choosing lower returns.
To the contrary: Canada has a deep, often underestimated market full of profitable, well-run companies with strong balance sheets and real growth potential. All of them are listed on the Toronto Stock Exchange (TSX), which is home to about 1800 companies to choose from. That means you have options. Plenty of them.
And to top this off, the S&P/TSX composite, whch is the main Canadian stock market index, made up of the largest and most important companies traded on the Toronto Stock Exchange, outperformed the S&P500 in 2025, delivering a cool 29% compared to 18%. Not too shabby for us Canucks, eh.
And here is a very practical bonus: you do not need to convert your hard earned cash to USD to invest in Canadian companies. Less hassle ? We love that.
Before we start, quick disclaimer: the investments mentioned here are for informational and entertainment purposes only and are meant to be a starting point for your own research. Past performance does not guarantee future results. Consider speaking with a qualified financial advisor before investing.
Now, let us jump in.
A simple place to start : broad Canadian exposure
If you like diversification without spending hours researching individual companies, Canadian focused ETFs are a great entry point.
What is an Exchange Traded Fund (ETF) ?
An ETF is similar to a mutual fund. It holds a basket of investments, which can include stocks, bonds, or other assets, all in one product.
Unlike mutual funds, which are typically sold through financial advisors, ETFs can be purchased directly on the stock exchange and usually come with much lower fees.
Many Canadian Banks, such as BMO, TD, RBC and ScotiaBank, offer a wide range of low cost ETFs that let you invest in the entire Canadian market or specific sectors like banks, dividends, or low volatility strategies (click on the links to see their lists). In fact, with the exception of Scotiabank, these banks let you filter by Canada directly on their websites, making it easy to find ETFs that focus specifically on the Canadian market.
One popular option is BMO’s ZCN S&P/TSX Capped Composite Index ETF. This ETF tracks the S&P TSX Composite, meaning it holds about 230 of the largest Canadian companies that represent about 95% of the TSX’s total value in one simple investment.
Some notable companies include Shopify, Endbridge & Brookfield Corp. When you buy it you are investing in banks, energy, technology, industrials & materials, all in one shot. This is the one that produced a 30% return in 2025. Note that other banks offer their equivalent ETF.
Simple. Boring. Effective.
For those who want to go a little deeper: Canadian companies to explore
If you enjoy picking stocks or want to complement ETFs with individual names, Canada has some strong household brands and global players. That said, stocks are riskier and not always beginner friendly, so approach with caution and remember ETFs can still be a great alternative if you want exposure without the stress. The point here is to show that we have options as investors.
Here are a few noteworthy Canadian companies that are exchanged on the TSX:
Shopify (SHOP) is a Canadian tech success story with global reach. While it operates worldwide, it is still a Canadian founded company with a long runway for growth.
Enbridge (ENB) is more about infrastructure than oil speculation. Pipelines, regulated cash flows, and dividends that many investors appreciate for stability. Current dividend is around 5,91%.
Aritzia (ATZ) and Groupe Dynamite (GRGD) represent Canadian consumer brands that have shown strong execution and growth, especially when managed well. Aritzia is a beautiful Canadian growth story now expanding in the US, and the stock has been reflecting this nicely by providing huge gains to it’s investors, whereas Groupe Dynamite soared over 330% in 2025. Wish I would have jumped on that.
Also in the fashion Category is Lululemon (LULU), which stock recently took a hit. Some would see it as a great entry point; it also has plans to expand across asia and the middle east. Something to consider.
Dollarama (DOL) is a great example of a company that performs well in both strong and weak economic environments, and they are expanding to Latin America and Australia.
Cameco (CCO) plays in the energy transition conversation through nuclear energy, which some investors see as a cleaner long term solution. This stock also had massive growth in 2025.
Hydro One (H) is a regulated utility. Not as sexy, but it will not crash tomorrow. These types of businesses often appeal to investors who value predictability.
Canadian Natural Resources (CNQ) is often cited for strong cash flow generation and disciplined capital allocation, which matters just as much as the sector itself. It also yields a great dividend which is currently around 4,79%.
Constellation Software (CSU) has been a longstanding Canadian tech compounder. It’s operations consist of buying and running highly profitable niche software businesses used by companies every day. It had recent downturn, which some analysts see as great buying opportunity.
Canadian banks
Canadian banks deserve their own category. The “Big 6” had an exceptional 2025, up 40%, with strong growth driven in part by higher banking fees. Yes, the same fees I told you to review in a previous post to save money. Full circle moment.
Beyond short term performance, Canadian banks have something investors love long term: a history of profitability, reliable dividends, and resilience through economic cycles.
You can choose any one of them:
TD Bank (TD)
Royal Bank of Canada (RY)
Scotiabank (BNS)
CIBC (CM)
National Bank of Canada (NA)
BMO (BMO)
If picking just one feels like choosing a favorite child, there is an easier option: BMO offers ZEB - BMO Equal Weight Banks Index ETF, which holds all 6 banks in equal weight.
These institutions operate under a strict regulatory framework and are deeply embedded in the Canadian economy. That is why many investors choose to hold them long term for income and stability.
Fun tidbit: banks invest in other banks through their own investment strategies. Even they believe in the system.
Where to buy these investments
Hot Money Mom loves low fee platforms like Questrade and Wealthsimple to open accounts because they save fees that would be charged by a financial advisor & banks.
You can receive $25 when you open your first account with Wealth Simple by using this link or by using code I7YVD2.
Once your account is open, all you have to do is search the ticker for the stock or ETF and buy it inside your investment account, like an FHSA, TFSA or RRSP.
It is honestly as easy as searching for your favorite moisturizer on Sephora.com. Really.
The takeaway
This list is only scratching the surface. With a bit of research, you can choose Canadian investments that fit your goals, your risk tolerance, and your values. Beyond stocks, there are also bonds, REITs (a way to invest in real estate through the stock market and earn income from properties without owning or managing them yourself), and other options that can play a role in a well balanced portfolio.
You can also go beyond Canada and invest in global or emerging markets if that feels right for you. Many ETF providers make this easy by letting you filter by region directly in their search tools.
It is also worth noting that many Canadian companies operate globally, which means there can still be indirect exposure to the US or other markets. That is completely normal. The goal is not to build a perfectly isolated portfolio. The goal is to invest intentionally.
The point is this: you can absolutely build a portfolio that aligns with your values, your risk tolerance, and your real life.
Strong fundamentals. Thoughtful choices. A clear conscience. And hopefully better sleep.
That is the Hot Money Mom approach 💗💸
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