Tag Archives: canada
The Challenge of Finding Outperforming Active Funds in Canada
The SPIVA® Canada Year-End 2019 Scorecard was released recently. Despite the strong performance of broad equities, 2019 proved to be yet another challenging year for active funds in Canada. Here are a few highlights from the report. Strong Market Performance Did Not Translate to Active Fund Outperformance The S&P/TSX Composite posted its highest annual return…
- Categories Equities
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Pandemic Affects Canadian Sectors Differently: Evidence from the Information Technology Sector
The S&P/TSX Capped Information Technology Index gained a whopping 62% in 2019, topping all other Canadian equity sectors and beating the broad market S&P/TSX Composite by about 40%. Given the traditionally cyclical nature of the Information Technology sector and its outsized gains during the bull market, the sector might be expected to lag during the…
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…
- Categories Equities
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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…
- Categories Equities
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- Equities
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Indexing Canadian REITs: A Look at the S&P/TSX Capped REIT Income Index
In a previous blog post, Evolution of Canadian REITs, we outlined the evolution of the Canadian REITs market. In this post, we will explore in detail the S&P/TSX Capped REIT Income Index, which is designed to serve as an income-producing strategy. The index seeks to measure the performance of REIT companies in the S&P/TSX Composite,…
- Categories Equities, Fixed Income
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Evolution of Canadian REITS
The Canadian REITs industry will mark its 25th anniversary in June 2018. In light of this milestone event, it is worthwhile to review the evolution of the market as well as the characteristics of the asset class. Canadian REITs were born after the recessionary period in the late 1980s and early 1990s. There were five…
- Categories Equities, Fixed Income
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Lessons From Canada’s Top Pension Managers
Summary Many studies have documented the fact that market participants in many regions, including Canada, invest more in the companies from their home country than would be warranted by their country’s share of global markets. Three of Canada’s largest and most sophisticated pension funds have cut Canadian exposure in their equity allocations. Yet private Canadian…
- Categories Equities
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- Equities
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Indexing 101: S&P Canada Aggregate Bond Index
The S&P Canada Aggregate Bond Index offers an investable way to participate in a broad index that is designed to measure the performance of the Canadian market. The index is made up of the following fixed income product groups (see Exhibit 1). Exhibit 1: S&P Canada Aggregate Bond Index and its Subindices The S&P Canada…
- Categories Fixed Income, Uncategorized
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Master Class Prep: The Transparency of Canadian Indices
In anticipation of S&P Dow Jones Indices’ ETF Masterclass for Canadian Advisors on June 23, 2016: A Bright Future for Financial Advisory, it helps to revisit some of the company’s involvement in the country. Our firm has always been committed to Canada, with an office on King Street West, and the company has always shown…
- Categories Fixed Income
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The Canadian Corporate Comeback
Yields of Canadian corporate investment-grade and high-yield bonds have been trending lower (up in price) since the beginning of March 2016. Year-to-date, the S&P Canada Investment Grade Corporate Bond Index returned 1.59% while the S&P Canada High Yield Corporate Bond Index returned 4.54% as of April 30, 2016. The beginning of April saw yield increase…
- Categories Fixed Income
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