Tag Archives: Canadian equities

Why Taking a Local Approach to Index Construction Matters in Canada

While nearly everyone in the Canadian investment community has heard of the S&P/TSX Composite, few are aware of the key methodological intricacies that distinguish it from other broad market Canadian equity benchmarks. The most notable distinction is that the S&P/TSX Composite is designed specifically for Canadians (as are all S&P/TSX Indices), while many other Canadian Read more […]

S&P/TSX 60 2019 Gains Boosted by Exposure to the U.S.

The S&P/TSX 60 gained 15.5% YTD[i] and many companies included in the index have benefitted from business prospects in the U.S. While nearly all stocks in the index are domiciled in Canada, 49%[ii] of combined revenues come from within Canada’s borders, while another 30% are sourced in the U.S. As shown in Exhibit 1, stocks Read more […]

Year-End 2018 Canada SPIVA®: Challenging Three Active versus Passive Misconceptions

Our Year-End 2018 Canada SPIVA scorecard was released today.  In addition to showing that the majority of Canadian active equity managers failed to outperform their benchmarks, the scorecard’s results provide the opportunity to dispel some common misconceptions.  Here is a brief summary. 1) Higher volatility does not necessarily result in outperformance by active managers A Read more […]

REITs: A Rare Bright Spot in an Otherwise Difficult Year for Canadian Equities

Despite weak Canadian equity market returns this year, REITs have continued their long-term outperformance. The benchmark S&P/TSX Composite has fallen 8.5% on a total return basis through Dec. 18, 2018, while the S&P/TSX Capped REIT continues to be a bright spot, gaining 8.8% over the same period—a difference of over 17%. Market analysts tend to Read more […]