A report from financial research firm Wealthfront suggests the world’s hottest companies are Canada’s biggest and most diversified.
The firm’s latest annual Wealthfront 100 list of the 100 hottest companies shows Canada’s top 10 are mostly from the U.S. with Canada’s five most prominent names, according to the report.
Canada has long been considered a key destination for investors with its large and diversified tech and financial sectors, including the oilpatch.
It’s been that way since the 1970s, when the country opened its doors to foreigners, with the arrival of the first foreign-owned and operated bank, the Bank of Montreal, and the creation of the Bank Act.
But in recent years, Canada’s foreign-born population has grown to more than 10 million.
Worries about the country’s immigration policies, which include restricting immigration to a narrow range of countries, have spurred many investors to seek alternative investment opportunities elsewhere.
“Canada’s stock market is among the world-leading and diversifying in the world, with a wealth of industry, infrastructure, technology, and international businesses that drive a strong Canadian economy,” the report states.
“Canada’s population and wealth are among the top 20 in the World.”
Investors have been drawn to Canada’s large tech and finance sectors.
They include big tech firms like Facebook and Google, tech giants like IBM, and companies like Canadian Natural Resources Ltd., which is seeking to expand operations to Mexico.
In the past year, tech companies including Google and Amazon have been adding to their presence in Canada, expanding into the country and building relationships with local governments and communities.
Google recently opened an office in the city of Calgary, which sits just east of Calgary International Airport, and is planning to add an office there next year.
Facebook recently announced a $250 million investment in an expansion project in Edmonton, which it hopes will double the number of employees and add 1,000 jobs by 2023.
The company’s first Canadian office, in Vancouver, opened in 2014.
There are also large, diversified retail players in Canada.
The biggest names on the list include Loblaws Ltd., Target Corp. and the Canada Post Corporation, which owns a number of grocery chains.
Other companies include Canadian Natural, which is in the midst of a multi-billion-dollar expansion plan in the country; B.C.-based General Mills Inc., which plans to invest $50 million in Canada’s largest flour mill in 2018; and Canada Post Corp. (which bought B.R.L. Foods in December).
Worst-performing companies are also among the most diversifiable.
The Wealthfront report found Canada’s major tech companies were the worst performers among the 100 fastest-growing companies in Canada in 2017.
The companies in the top 10 that are in the worst performing sectors are: Bank of Nova Scotia, one of the world´s biggest banks, lost $2.7 billion, or $1.4 billion per year.
Aldi Group Inc. lost $1 billion, down from $4.3 billion in 2017, and was one of three major retailers to report declines in 2018.
Hamburg-based Ikea lost $400 million, or 13.6 percent, or down from 19.6 in 2017 and was the third-worst performer among U.K.-based retail brands.
And, of the top 100 companies in terms of the largest share of total global revenue, only the U:M.S., which operates the worlds largest online retailer, lost money.
But the top-performing sectors of the bottom 100 were not nearly as diversified, according the report, which also noted the U, S, and M:The top-earning sectors of all sectors of companies in each of the 50 largest economies were technology and finance, accounting for nearly one-third of total revenues and the majority of companies’ profit.
These sectors were the fastest-rising industries in 2017 but they saw a slight drop in 2018 compared with 2017.
For example, the technology and financial sector saw the largest increase in revenues of any sector in the U-S.
and saw its share of global revenue decrease from 22 percent in 2017 to 17 percent in 2018, the report said.
also reported the highest growth in the sectors in 2018 of any of the major economies.
Some companies also fared poorly in the report’s “Performance of the Most Diversified Companies” category, which ranks the top 50 companies on the strength of their overall growth, profitability, and diversification.
The top-ranked companies were: Alphabet Inc. (Google), Facebook Inc. ($2.1 billion), and Twitter Inc.($2.4 million), while the next-ranked firms were: Oracle Corp. ($1.8 billion), Boeing Co. ($950 million), Microsoft Corp.($525 million), and Apple Inc.( $420 million).
In fact, only four companies on that list, Oracle