S&P/TSX Composite Index
The S&P/TSX Composite Index is an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange (TSX) as measured by market capitalization. The Toronto Stock Exchange listed companies in this index account for about 70% of market capitalization for all Canadian-based companies listed on the TSX. It replaces the earlier TSE 300 index.
To be eligible for inclusion in the Composite index:
- Market Capitalization: For eligibility any security must represent a minimum weight of 0.05% of the index. Moreover, the security must have a minimum weighted average price of at least C$1 over the past three months and over the last three trading days of the month-end prior to the exchange reviewing the index.
- Liquidity: The trading volume in terms of dollar value and the number of transactions must exceed at least 0.025% of the sum of all eligible securities' trading volume. To ensure that no single company dominates trading, they are capped at a maximum of 15% for value, volume and transactions.
- Domicile: Stocks must be listed on the Toronto Stock Exchange and be incorporated under Canadian laws.
List of companies
Effective close of June 20, 2014.
There are currently no ETFs that match the S&P/TSX Composite Index; however, the iShares S&P/TSX Completion Index Fund (TSX: XMD) combined with the iShares S&P/TSX 60 Index Fund (TSX: XIU) can give equivalent exposure. The iShares S&P/TSX Capped Composite Index Fund (TSX: XIC) and BMO S&P/TSX Capped Composite Index Fund (TSX: ZCN) match the diversity of the index but the relative weighting of each constituent is capped at 10%.
Several ETFs exist to provide exposure to segments of the index; these include:
- S&P/TSX Capped Energy Index Fund (TSX: XEG)
- S&P/TSX Capped Financials Index Fund (TSX: XFN)
- S&P/TSX Capped Information Technology Index Fund (TSX: XIT)
- S&P/TSX Capped Materials Index Fund (TSX: XMA)
- S&P/TSX Capped REIT Index Fund (TSX: XRE)