S&P/TSX 60

Parent Index

NA

Indices informations

Countries Represented	Canada
Central Bank	Bank of Canada
Nickname	CAD
Related Constituents
Weightage of Largest Constituent
Weightage of Top 5 Constituents
All time High	1,344.63
All time Low	318.42
Market Capitalization	$2.75 trillion
Weighting Methodology	Market capitalization
Year to Date Return
Dividend Yield	1.28%
Price to earning Ratio	1.93

Listed Exchanges

Related Instuments

Sector Represented

Indices

S&P/TSX 60 (S&P TSX60) Index – Explained

The S&P/TSX 60 Index, commonly referred to as the S&P TSX60, is a stock market index that represents the performance of the 60 largest and most actively traded stocks on the Toronto Stock Exchange (TSX). It is widely considered as a benchmark for the Canadian equity market.

Created by Standard & Poor’s (S&P) in partnership with the TSX Group, the S&P/TSX 60 Index was launched on January 1, 1999. It aims to provide investors with a comprehensive and representative measure of the Canadian stock market’s performance through its constituent companies.

The composition of the S&P/TSX 60 Index is periodically reviewed and revised to ensure it accurately reflects the market’s dynamics. The index includes a diverse range of sectors such as financials, energy, materials, industrials, and consumer staples, among others. This diversification helps reduce concentration risks and provides a balanced representation of the Canadian economy.

Weighting within the S&P/TSX 60 Index is based on market capitalization, meaning that larger companies have a higher influence on the index’s performance. This methodology ensures that the index’s movements are primarily driven by the market leaders and major players in the Canadian stock market.

Investors and market participants use the S&P/TSX 60 Index as a reference point to gauge the overall health and direction of the Canadian stock market. It is often used as a benchmark for portfolio performance evaluation, as well as for creating index-tracking funds and exchange-traded funds (ETFs).

The S&P/TSX 60 Index has gained significant prominence over the years due to its comprehensive coverage of the Canadian stock market. It provides investors with a snapshot of the overall performance and trends within the country’s equity market.

It is important to note that while the S&P/TSX 60 Index may give insights into the broader Canadian stock market, it does not capture the performance of all publicly traded companies in Canada. Other indexes, such as the S&P/TSX Composite Index, cover a larger number of stocks and offer a more extensive representation of the overall market.

In conclusion, the S&P/TSX 60 (S&P TSX60) Index is a key benchmark for the Canadian stock market. It represents the performance of the largest and most actively traded stocks on the TSX, providing investors with an indication of the overall market trends and movements.

S&P/TSX 60 Key Data Points

The S&P/TSX 60 Index, also known as the TSX 60, is a stock market index of the 60 largest companies listed on the Toronto Stock Exchange (TSX). It represents approximately 70% of the total market capitalization of the TSX. The TSX 60 is widely used as a benchmark for Canadian equity performance and provides investors with a snapshot of the overall health and direction of the Canadian stock market.

Here are some key data points about the S&P/TSX 60:

1. Constituent Companies

The S&P/TSX 60 comprises of various industry sectors including financials, energy, materials, and utilities among others. Some well-known companies included in the index are Royal Bank of Canada, TD Bank, Enbridge, Barrick Gold, and Shopify.

2. Market Capitalization

As of [insert date], the total market capitalization of the S&P/TSX 60 was approximately [insert market cap]. This figure represents the combined value of all the companies included in the index and gives an idea of the overall size of the Canadian stock market.

3. Weighting Methodology

The S&P/TSX 60 uses a float-adjusted market capitalization weighting methodology. This means that larger companies with higher market capitalizations have a greater influence on the index’s performance compared to smaller companies. The weights of individual stocks within the index are reviewed periodically to ensure they reflect the current market conditions.

4. Performance

The performance of the S&P/TSX 60 is measured in terms of its total return index. This includes both the price appreciation of the constituent stocks as well as the dividends paid by those companies. Investors can use the index’s performance as a benchmark to compare their own investment returns or to assess the overall performance of the Canadian equity market.

5. Sector Allocation

The S&P/TSX 60 provides insights into the sector composition of the Canadian stock market. It enables investors to understand which sectors are driving the market and how different sectors are performing relative to each other. This information can be valuable for asset allocation strategies and identifying potential investment opportunities.

6. Rebalancing

The S&P/TSX 60 undergoes quarterly rebalancing to ensure that it remains representative of the Canadian equity market. During this process, companies may be added or removed from the index based on certain criteria, such as changes in market capitalization or liquidity. This regular adjustment ensures that the index accurately reflects the current state of the Canadian stock market.

7. Index ETFs

Investors can gain exposure to the S&P/TSX 60 through exchange-traded funds (ETFs) that track the index. These ETFs allow individuals to invest in a diversified portfolio representing the largest Canadian companies with a single trade. They provide a convenient way to gain broad exposure to the Canadian equity market without having to purchase individual stocks.

In conclusion, the S&P/TSX 60 is a crucial benchmark for Canadian equity performance. Its key data points, including constituent companies, market capitalization, weighting methodology, performance, sector allocation, rebalancing, and availability of index ETFs, provide valuable insights to investors and serve as an indicator of the overall health and direction of the Canadian stock market.