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US and Canadian households’ equity allocations near record high at 60%
North American households, pensions, and funds are more exposed to stocks than at almost any point in history, raising questions about what happens when the music stops
North American households have gone all-in on stocks. Households, pensions, and funds across the US and Canada now hold roughly 60% of their assets in equities, a figure that flirts with all-time records and exceeds even the peak of the dot-com bubble.
The numbers behind the record
According to the Federal Reserve’s Z.1 data series, US households held approximately 45.8% of their financial assets in equities as of Q1 2026. When you broaden the lens to include pensions and investment funds, the combined allocation approaches 60%.
To put that in dollar terms: equities reached a record 33% of total US household net worth by the end of 2025, translating to $67.77 trillion in holdings.
Canada tells a similar story. Canadian households had about 47% of their financial assets in equities by the end of 2024, valued at C$5.16 trillion. Total Canadian household net worth surpassed C$18.6 trillion in Q1 2026.
Gallup data fills in the participation picture: 62% of US adults owned stocks in 2025, maintaining levels above 60% since 2023.
Why this time feels different (and familiar)
The concentration within equities is striking. Within the S&P 500, just ten stocks account for roughly 40% of the total market capitalization.
Financial commentators like Edward Conard and Paul Kedrosky have pointed out that today’s ownership landscape may be more systematic than discretionary: people aren’t necessarily choosing to be this exposed to equities, but are being funneled there by 401(k) auto-enrollment, target-date funds, and the sheer gravitational pull of index investing.
High-net-worth individuals and family offices are pushing the trend even further, with surveys suggesting their equity allocations often exceed traditional benchmarks.
What this means for investors
When 60% of household assets sit in equities, a 20% market drawdown doesn’t just hurt portfolios. It dents consumer confidence, slows spending, and can trigger a self-reinforcing economic downturn. Economists call this the wealth effect, and it works in both directions.
The concentration risk within indices amplifies this concern. If a handful of mega-cap names stumble, the impact cascades through index funds, 401(k)s, and pension portfolios simultaneously.
For individual investors, owning an S&P 500 index fund might feel diversified across 500 companies, but when ten names represent 40% of the weight, the effective diversification is far less than the label suggests.