After years of playing second fiddle to the S&P 500, the S&P/TSX Composite has staged a remarkable comeback in 2025, driven by commodity demand and shifting trade dynamics. This article explains what the index actually tracks, which companies drive its performance, and whether it belongs in your portfolio.

4 related posts

Current Value: 32,957.95 (+0.58%) · Market Coverage: ~70% of total TSX market cap · Index Symbol: ^GSPTSE · Headline Index: Broadest in S&P/TSX family · Top Source: S&P Dow Jones Indices

Quick snapshot

1Confirmed facts
2What’s unclear
  • Exact sector weight breakdowns for 2026 rebalancing
  • Full impact of ongoing tariff negotiations on energy weighting
  • Currency-adjusted S&P 500 returns in CAD for multi-year periods
3Timeline signal
4What’s next

Key specifications for the S&P/TSX Composite Index at a glance:

Label Value
Full Name S&P/TSX Composite Index
Operator S&P Dow Jones Indices
Exchange Toronto Stock Exchange (TSX)
Coverage Largest 70% of TSX cap
Symbol ^GSPTSE
Market Cap Growth CAD 2.75 trillion since 1998
25-Year Return 595% total, 8% annualized

What is S&P TSX Composite?

The S&P/TSX Composite Index is the principal broad market measure for Canadian equity markets, encompassing common stocks and income trusts listed on the Toronto Stock Exchange. It serves as the headline index that most Canadian financial media references when discussing national stock market performance. The index operator, S&P Dow Jones Indices, maintains the index and publishes official methodology documentation.

What is the S&P/TSX Composite Index?

The S&P/TSX Composite Index aims to represent approximately 95% of the Canadian equities market by capitalization. This means the index captures the vast majority of trading activity and market value on the TSX. The index is the basis for multiple sub-indices and investable products, including futures contracts (SCF), making it foundational to Canadian capital markets. Unlike market-cap-weighted indices that simply track the largest companies, the S&P/TSX Composite uses specific eligibility criteria to determine which securities qualify.

Is S&P the same as TSX?

No, these represent different concepts. “TSX” refers to the Toronto Stock Exchange itself, the marketplace where securities trade. “S&P” indicates that S&P Dow Jones Indices provides the index methodology, calculation, and maintenance. The S&P/TSX Composite Index specifically tracks securities listed on the TSX using S&P’s indexing standards. Think of the TSX as the venue and S&P as the scorekeeper applying consistent rules to measure performance.

Since Aug. 31, 1998, the S&P/TSX Composite Index has increased by over CAD 2.75 trillion in total market capitalization.

— S&P Dow Jones Indices LLC, 25-Year Index Retrospective

The paradox

S&P Dow Jones Indices publishes 25-year data showing 595% total returns—but Canadian investors often feel they missed out because the S&P 500 stole headlines with flashier tech-driven gains. The implication: absolute returns don’t always translate to perceived performance when peer benchmarks outperform.

TL;DR: The S&P/TSX Composite is Canada’s premier equity benchmark, tracking roughly 250 companies and capturing 70% of TSX market cap. S&P Dow Jones Indices operates it using rules set by the TMX Group.

What companies are in the S&P TSX?

The S&P/TSX Composite includes roughly 250 constituents, with the largest companies dominating by market capitalization. Financials form the largest sector weight, followed by energy and materials. This sector concentration differs significantly from US benchmarks, creating distinct performance characteristics.

S&P/TSX Composite Index constituents

The index rebalances regularly, with eligibility determined by listing requirements on the Toronto Stock Exchange. According to the Toronto Stock Exchange’s official resource, constituents must meet liquidity thresholds and represent the largest portion of total market capitalization. The S&P/TSX Composite Dividend Index specifically includes all stocks with positive yields, rebalanced by median dividend yield for the top 75 high-yield stocks. The largest companies have grown dramatically—the top performer increased market cap over 5× since 1998, with the average and median both exceeding 7×.

S&P/TSX Index eligibility

Eligibility criteria are set by the TMX Group, which owns the Toronto Stock Exchange. Securities must be listed on the TSX, meet minimum price and trading volume requirements, and fall within the top specified percentage of total market capitalization. The index captures the largest 70% of TSX market cap, ensuring comprehensive market representation while maintaining manageable constituent count.

The technology sector makes up 21% of the capitalization of the S&P 500 versus only 5.7% in the TSX Composite.

— Logan Wealth Management, Sector Weight Analysis

TL;DR: Top holdings include major Canadian banks (RBC, TD, BMO, Scotiabank), energy producers (Suncor, Cenovus), and mining companies (Barrick Gold). The index rebalances quarterly with semi-annual reconstitution.

What is the difference between S&P TSX and S&P 500?

The S&P/TSX Composite and S&P 500 represent the premier equity benchmarks for their respective countries, but their compositions differ substantially. The S&P 500 represents 500 of the largest US companies and serves as a key benchmark for US stock market performance, while the TSX Composite focuses exclusively on Canadian-listed securities. These differences create distinct performance profiles that Canadian investors must understand.

S&P 500 vs TSX Composite comparison

The technology sector provides the starkest contrast. The S&P 500 allocates 21% to technology, while the TSX Composite allocates only 5.7%, according to Logan Wealth Management’s sector analysis. Energy, conversely, carries three times the weight in the TSX compared to the S&P 500. The S&P/TSX Composite is heavily weighted toward financials, energy, and materials, whereas the S&P 500 is dominated by technology and healthcare.

During 2011–2014, this sector disparity played out clearly in returns. The S&P/TSX Composite averaged 5.5% annually while the S&P 500 returned 20.9% in Canadian dollar terms. Tech strength drove S&P 500 outperformance during this period. However, 2025 marked a notable reversal. ATB Financial reports that tariffs on industrial metals (steel, aluminum, copper) and gold demand created favorable conditions for TSX, which is heavily exposed to materials and energy. This shift demonstrates how sector composition creates divergent performance depending on macroeconomic conditions.

The upshot

The forward P/E ratio tells a compelling story: TSX at 18.5x versus S&P 500 at 21.5x as of late 2024/early 2025 suggests Canadian stocks trade at a discount, potentially offering better value for investors prioritizing valuation metrics.

The comparison table below highlights key differences in sector weights and performance between the two indices:

Metric S&P/TSX Composite S&P 500
Technology Weight 5.7% 21%
Energy Weight 3× heavier than S&P 500 Baseline
Dominant Sector Financials Technology
Annual Return 2011-2014 (CAD) 5.5% 20.9%
Forward P/E (2025) 18.5x 21.5x
2025 Return 31.68% Varies
2024 Return 21.65% Varies

Seven comparison rows reveal a consistent pattern: sector composition drives the gap more than market size or individual company performance. When energy and materials outperform, TSX closes the gap. When technology leads, S&P 500 pulls ahead.

TL;DR: TSX’s heavy energy and materials weighting (3× S&P 500’s energy exposure) created a 15-percentage-point annual gap against the S&P 500 during 2011–2014. The catch: the same sector tilt drove TSX’s 31.68% return in 2025 when commodities rallied.

What is the average return on the TSX last 20 years?

Long-term TSX returns demonstrate solid but variable performance depending on the time period examined. S&P Dow Jones Indices published 25-year data showing the S&P/TSX Composite delivered total returns exceeding 595% from August 31, 1998, to August 31, 2023, which translates to an 8% annualized return in Canadian dollars. This figure includes market cap growth of CAD 2.75 trillion since the starting point.

Historical TSX performance

Looking at more recent annual returns from YCharts provides year-by-year detail. The TSX returned 22.88% in 2019, followed by a modest 5.60% in 2020 during the pandemic. The index surged 25.09% in 2021, then pulled back with a -5.84% decline in 2022. Recovery came strong in 2023 at 11.75% and accelerated to 21.65% in 2024, with 2025 delivering exceptional 31.68% returns. Canadian health care sector performance has been marginal, down 1.5% YTD in 2025 with limited impact on overall index returns.

Why this matters

The TSX delivered positive monthly returns in over 85% of 3-, 5-, and 10-year periods since September 1998. For patient investors, the historical odds favor positive outcomes even when individual years disappoint.

Historically, the US S&P 500 index has outperformed the Canadian S&P TSX Composite, but investors have seen a shift in 2025, largely due to increased tariffs affecting industrial metal prices.

— Alek Sawchuk, CFA, ATB Financial market commentary

TL;DR: TSX delivered 8% annualized over 25 years despite significant annual swings. The pattern: positive returns in 85%+ of rolling 3, 5, and 10-year periods since 1998, but extreme volatility in individual years (from -5.84% in 2022 to +31.68% in 2025).

Should I invest in TSX or S&P 500?

This investment decision depends on your geographic exposure, income needs, and risk tolerance. Both indices offer legitimate long-term investment approaches, but they serve different portfolio functions. The TSX’s heavy weighting in financials, energy, and materials creates different risk exposures than the tech-heavy S&P 500.

How to buy S&P/TSX Composite Index

Canadian investors can access the S&P/TSX Composite through several ETF options, with the iShares Core S&P/TSX Capped Composite ETF (ticker: XIC) being the most widely held. BlackRock reports that XIC seeks to replicate the index net of expenses for long-term growth. The ETF has delivered benchmark returns of 25.09% (1Y), 11.75% (3Y), 21.65% (5Y), and 31.68% (10Y). Purchasing through any Canadian brokerage that offers TSX-listed ETFs provides straightforward access. Investors can also consider index mutual funds that track the same benchmark.

Upsides

  • Valuation discount to S&P 500 (18.5x vs 21.5x forward P/E)
  • Commodity exposure benefits from tariff-related price movements
  • Dividend income potential from high-yield rebalancing approach
  • Lower correlation with US markets provides diversification
  • 85%+ positive return rate across 3-, 5-, 10-year periods

Downsides

  • Limited technology exposure compared to S&P 500
  • Heavier energy weighting amplifies commodity volatility
  • Historically underperformed during tech-driven bull markets
  • Smaller pool of high-growth companies
  • Currency risk for non-CAD investors

The sector composition creates a fundamental tension: when commodities and financials outperform, TSX investors benefit; when technology drives returns, they lag. This is not a flaw but rather a feature—different indices serve different market conditions.

S&P/TSX chart

Current chart data shows the index at 32,957.95 as of April 1, 2026, with YTD 2026 returns at 4.54% according to YCharts. The recent trajectory reflects ongoing commodity market dynamics and tariff policy impacts on industrial metals. Investors seeking real-time data can access chart services through Yahoo Finance or Trading Economics.

S&P/TSX 60 and utilities index

The S&P/TSX 60 represents the blue-chip subset of the Composite, containing the 60 largest companies. S&P Dow Jones Indices data shows the TSX 60 actually outperformed the broader Composite over the 25-year period ending August 31, 2023. The utilities index provides exposure to regulated infrastructure companies with different risk profiles than the broader energy sector.

TL;DR: Canadian investors access TSX via XIC ETF ( ) or index mutual funds. The S&P/TSX 60 blue-chip subset actually beat the broader Composite over 25 years—worth considering for concentrated Canadian exposure.

Related reading

1How index rebalancing works
  • Quarterly reviews, semi-annual reconstitution
  • Impact on sector weights and returns
2ETF cost comparison
  • Expense ratios: XIC vs alternatives
  • Tracking error considerations

Related reading: S&P/TSX Composite Index

Canadian investors analyzing the S&P/TSX Composite Index often consult this S&P/TSX Composite guide for detailed charts, top companies and ETF options.

Don't miss these

Frequently asked questions

What eligibility criteria apply to S&P/TSX Index?

Securities must be listed on the Toronto Stock Exchange, meet minimum liquidity thresholds, and fall within the top specified percentage of total market capitalization. The TMX Group sets these requirements, with the index capturing approximately 70% of total TSX market cap.

What sectors dominate S&P/TSX?

Financials form the largest sector weight, followed by energy and materials. Technology represents only 5.7% of the index, compared to 21% in the S&P 500. This concentration creates distinct performance characteristics from US benchmarks.

How does TSX perform vs global indices?

Historically, TSX has underperformed the S&P 500 during tech-driven bull markets but shows competitive returns during commodity cycles. The 2025 shift demonstrates this pattern reversal, with TSX delivering 31.68% returns driven by tariff-related commodity demand.

Are there ETFs for S&P/TSX?

Yes, the iShares Core S&P/TSX Capped Composite ETF (XIC) is the most widely held option, tracking the index with low expenses. Other providers offer similar products with minor differences in methodology or rebalancing approaches.

What drives S&P/TSX movements?

Energy prices, commodity demand (particularly gold and industrial metals), Canadian dollar exchange rates, and interest rate policy from the Bank of Canada all significantly impact index performance. Financial sector earnings also carry substantial weight.

Is S&P/TSX suitable for beginners?

The index provides broad diversification across Canadian equities, making it suitable for beginners seeking market exposure. Low-cost ETFs like XIC offer simple access without requiring individual stock selection. However, understanding the sector concentration differences from S&P 500 helps set appropriate expectations.

S&P/TSX vs TSX Venture?

The TSX Venture Exchange focuses on smaller, early-stage companies, while the S&P/TSX Composite tracks the largest, most established companies. The Composite represents mature businesses with proven trading histories, unlike the higher-risk, higher-reward profile of Venture-listed securities.

Current top holdings in S&P/TSX?

Top holdings typically include major Canadian banks (RBC, TD, BMO, Scotiabank), energy producers (Suncor, Cenovus), and mining companies (Barrick Gold). These financial and resource giants drive the majority of index performance given their substantial market capitalizations.

For Canadian investors deciding between these benchmarks, the choice hinges on sector conviction and portfolio construction goals. Investors seeking technology exposure should look to US indices or specific sector funds. Those prioritizing dividend income, commodity exposure, and Canadian equity diversification will find the S&P/TSX Composite well-suited to their needs. The index’s 8% annualized 25-year return demonstrates long-term wealth creation, while the 2025 shift suggests ongoing relevance in a changing global trade environment.