Does the upcoming federal election in Canada and political uncertainty equal market opportunity?  Here’s what Canadian investors think

Could the federal election in Canada offer a chance to boost your portfolio? Some investors seem to think so. New insights from BetaPro by Global X’s first-ever survey of Canadian investors finds that some investors see opportunities to capitalize on market uncertainty during the next federal election, which has now been called to occur on Monday, April 28, 2025. 

The survey, conducted by Angus Reid in December 2024, found that 35% of the respondents say a federal election could potentially increase their opportunity for returns. When you drill down into those figures, men seem to be particularly bullish on how the election could help their investments, with 47% of the respondents saying an election will create more opportunities for increased returns versus only 23% for women. Overall, 19% of respondents believe a national election will lead to less opportunity for increased returns.

These survey results align with how respondents viewed the recent U.S. election, with 34% of respondents seeing it as a potential catalyst for returns. Investors who recognized that opportunity were initially rewarded. In the 30 days immediately after the U.S. election, the S&P 500 rose by about 6.5%, while the Nasdaq jumped by 8.5%. (Bloomberg, November 6 – December 6, 2024)

 Investors who held BetaPro S&P 500® 2x Daily Bull ETF (SPXU) or BetaPro NASDAQ-100® 2x Daily Bull ETF (QQU) may have enjoyed even stronger gains, as they were up by 12.9% and 15%, respectively over that period. (Learn more about BetaPro ETFs here.)

The respondents in the survey seem to view elections as having a bigger impact on their returns than other market-moving factors, including the Bank of Canada’s interest rate policy. While 10% of them described the election as potentially increasing their returns, only 3% felt that way about interest rates.

Of course, interest rate decisions can unlock potential trading opportunities, but elections are clearly on people’s minds. That might not be all that surprising given the survey was conducted as questions swirled about the future of then-Prime Minister Justin Trudeau and his successor, who we now know is former Bank of Canada governor and current Prime Minister Mark Carney.

Factor-in the unpredictability of U.S. policy and tariffs, and, understandably, investors see a Canadian election as potentially creating more market volatility. That, as savvy investors know, could unlock more potential trading opportunities to seize on, regardless of how markets react.

A greater number of people may want to take advantage of moments like the election as a way to regain lost ground in their portfolios. More than a third of the respondents (35%) said their confidence in their ability to reach their goals has slipped over the past year.

It’s also possible that investors see the election as a way for the economy to get out of its perceived funk. Even before U.S. voters returned Donald Trump to the Oval Office and America’s punitive tariffs on Canada, the survey found that 45% of the respondents felt the economy was in decline, while another 34% considered it to be stagnant.

No matter how markets might react to an election, a significant number of the respondents say they are willing to explore different investment strategies if it could help them make up lost ground in their portfolios. More than one in four say they may be willing to consider riskier assets if it will help them achieve their financial goals.

Younger participants in the survey are even more open to using investments like cryptocurrencies (19%), options (13%), hedge funds (12%) and leveraged ETFs (12%). Overall, 41% of respondents between ages 18 and 35 said they’d consider riskier assets if they offered the potential for higher returns.

While these kinds of alternative investments provide the potential to boost your returns, it’s important to understand how they work. BetaPro ETFs are meant to be traded daily and are designed for sophisticated investors. They’re not for buy-and-hold investing. These ETFs offer the opportunity to potentially capitalize on both market downturns and upswings and execute tactical investment strategies, such as short selling, without the complexities or risks of traditional margin accounts.

Traders looking to capitalize on market movements surrounding Canada’s federal election may consider Global X’s BetaPro ETFs, which offer daily leveraged (up to 2x), inverse (-1x), and inverse leveraged (up to -2x) exposure to various Canadian indices and sectors.

These ETFs are tailored for short-term, daily, tactical trading strategies, providing amplified returns and enhancing daily gains but also magnifying daily losses in downturns. Inverse ETFs profit from market declines but can incur rapid daily losses if trends reverse. Investors should assess their risk tolerance, risk capacity and conduct thorough research before investing.

Given the inherent risks and complexities of leveraged and inverse ETFs, these instruments are best suited for experienced sophisticated investors comfortable with active management and short-term or daily trading.

With a federal election now underway,– Canadians may now have a chance to take advantage of any potential market volatility and new investment opportunities.

About the respondents

The survey conducted in December 2024, reached 1,013 investors and reflects a range of ages, income levels, and genders. Of the respondents, 88% report having investable assets of at least $100,000. Roughly half (51%) of those surveyed use an advisor or other professional to manage their money, 32% consider themselves DIY investors who manage their investments, with the rest using an online platform (10%) or relying on someone in their household to manage their investments (6%).

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Published March 24, 2025