S&P/TSX Composite Index
The S&P/TSX Composite Index is the benchmark Canadian index, representing roughly 70% of the total market capitalization on the Toronto Stock Exchange (TSX) with about 250 companies included in it. The Toronto Stock Exchange is made up of over 1,500 companies. In September 2014, the S&P/TSX Composite Index posted its all-time high, 15,657.63. The surge in oil prices in 2014 had led the S&P/TSX Composite Index to attain this peak level as both the Energy and Financial Sectors primarily got a boost. 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 Friday, September 16, 2016.
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)