S&P/TSX 60

S&P/TSX 60
Name	S&P/TSX 60
Operator	S&P Dow Jones Indices
Foundation	1999
Exchanges	Toronto Stock Exchange
Constituents	60
Capitalization	Market-capitalization weighted

S&P/TSX 60 The S&P/TSX 60 is a Canadian large-cap equity index maintained by S&P Dow Jones Indices and traded on the Toronto Stock Exchange, designed to represent leading companies from across major sectors in Canada. It is widely used by institutional investors such as RBC Global Asset Management, BlackRock, Vanguard Group, and Fidelity Investments as a benchmark for Canadian large-cap exposure and underlies exchange-traded products listed by issuers like iShares and BMO Global Asset Management. The index interacts with global benchmarks including the S&P 500, FTSE 100, MSCI Canada Index, and Russell 1000 for cross-market analysis.

Overview

The index was introduced following methodologies developed by Standard & Poor's and is compiled by S&P Dow Jones Indices using rules similar to those for the S&P 500 and S&P/TSX Composite Index. It includes sixty constituents drawn from the S&P/TSX Composite Index universe and is intended to reflect performance of large, liquid Canadian issuers such as Royal Bank of Canada, Toronto-Dominion Bank, Enbridge, Canadian National Railway, and Shopify. Investors compare it with other benchmarks like the S&P/TSX SmallCap Index, S&P/TSX MidCap Index, and international indices including the MSCI World and Dow Jones Industrial Average.

Composition and Eligibility Criteria

Constituent selection follows eligibility criteria set by S&P Dow Jones Indices and involves market capitalization, liquidity, domicile, and public float standards applied to companies listed on the Toronto Stock Exchange or dual-listed on exchanges such as the New York Stock Exchange or Nasdaq. Eligible issuers include companies incorporated in Canada and major multinationals like Manulife Financial, Barrick Gold, Suncor Energy, BCE Inc., and Canadian Pacific Kansas City. The committee considers factors linking to corporate actions involving firms such as Brookfield Asset Management, Thomson Reuters, CN Rail, Power Corporation of Canada, and Telus. Exclusions arise for issuers failing liquidity screens or those affected by delisting events involving exchanges like the TSX Venture Exchange.

Calculation and Weighting Methodology

The index is calculated using a float-adjusted market capitalization weighting methodology shared with benchmarks like the S&P 500 and S&P/TSX Composite Index, applying free-float factors to shares outstanding for companies such as Imperial Oil, Cenovus Energy, Magna International, George Weston Limited, and Waste Connections. Corporate actions involving entities like Onex Corporation, Gildan Activewear, Fairfax Financial, and CAE Inc. prompt adjustments to shares and weights. The calculation process uses standardized protocols similar to those used by NYSE Arca and London Stock Exchange indices, ensuring continuity through events like mergers and acquisitions and spin-offs.

Performance and Historical Returns

Historically the index’s returns have been influenced by sectoral leaders such as Royal Bank of Canada, Shopify, Enbridge, Suncor Energy, and Barrick Gold, and by macro events including the 2008 financial crisis, COVID-19 pandemic, and commodity cycles linked to entities like Teck Resources and Cenovus Energy. Analysts compare total return series against international peers like the MSCI Canada Index, S&P 500, and FTSE Canada All-Share Index to evaluate alpha generated by active managers at firms such as RBC Global Asset Management and TD Asset Management. Long-term performance metrics are monitored by pension funds including the Canada Pension Plan Investment Board and sovereign wealth investors benchmarking alongside Ontario Teachers' Pension Plan allocations.

Constituent Changes and Rebalancing

A governance committee at S&P Dow Jones Indices conducts periodic reviews and ad hoc changes, announcing additions and deletions tied to corporate events involving companies like CAE Inc., Brookfield Renewable Partners, Alimentation Couche-Tard, Restaurant Brands International, and Loblaw Companies. Rebalancing episodes reflect M&A activity by firms such as Canadian Natural Resources, Emera Inc., Fortis Inc., and Manulife Financial, or share restructurings resembling transactions seen at Goldcorp and Shaw Communications. Changes affect ETFs and index funds managed by providers like iShares, BMO ETFs, and Vanguard Canada.

Relationship to Other Canadian Indices

The index is a subset of the S&P/TSX Composite Index and is compared with the S&P/TSX 60 Equal Weight Index, S&P/TSX Completion Index, and sector-specific benchmarks such as the S&P/TSX Capped Energy Index and S&P/TSX Capped Financials Index. International comparisons include the MSCI Canada IMI, FTSE Canada, and regional benchmarks like the S&P Latin America 40. Data providers such as Bloomberg, Refinitiv, and FactSet disseminate index values used by market participants including Goldman Sachs and Morgan Stanley.

Market Impact and Usage by Investors

The index underpins passive products issued by asset managers like BlackRock (iShares), BMO Global Asset Management, Vanguard Group, and Horizons ETFs and serves as a benchmark for active managers at firms including RBC Global Asset Management, Fidelity Investments, and CI Financial. It influences capital flows to large-cap issuers such as Royal Bank of Canada, Shopify, and Enbridge through index-tracking demand, and is used by pension funds like Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan for portfolio construction and risk management alongside derivatives traded on venues like the Montreal Exchange. S&P Dow Jones Indices stewardship, index licensing agreements, and product listings by exchanges such as the Toronto Stock Exchange and NYSE Arca shape market access and investor strategy.

Category:Canadian stock market indices