The S&P/TSX Composite Index tracks the performance of the largest companies listed on the Toronto Stock Exchange. Consisting of roughly 230 constituents, the index accounts for nearly 95% of Canada’s equities market—often serving as a benchmark for Canada’s overall economic health.
The index is segmented into 11 economic sectors according to the Global Industry Classification Standard (GICS)—a four-tiered industry analysis framework developed by S&P Dow Jones and MSCI. This standardization classifies companies into sector groups with similar business activities. The GICS hierarchy extends further into 25 industry groups, 74 industries, and 163 sub-industries. These granular classifications provide essential support for market participants in performance evaluation, sector analysis, portfolio positioning, and sector-based rotational themes.
Business cycles—recurring periods of economic expansion and contraction—represent fluctuations in growth that profoundly influence financial markets. While each cycle is unique, historical patterns of sector performance often emerge. Leadership tends to rotate as the economy shifts, driven by macroeconomic variables and investor psychology. Discerning relative strength from weakness, especially in the early stages of a trend, is essential. Identifying which sectors to avoid is as critical as pinpointing those favored by the prevailing environment.
| As of September 29, 2026 | 2024 | 2025 | YTD% | Structure* | +/- |
|---|---|---|---|---|---|
| Cyclical Sectors | |||||
| S&P/TSX Capped Financials Index | 30.10 | 33.74 | 17.65 | 2 | Relative Strength |
| S&P/TSX Capped Real Estate Index | 5.50 | 1.41 | -7.29 | 1 | Relative Weakness |
| S&P/TSX Capped Information Technology | 37.96 | 13.49 | 0.65 | 3 | Relative Weakness |
| S&P/TSX Capped Consumer Discretionary Index | 11.89 | 28.06 | -0.53 | 3 | Relative Weakness |
| Sensitive Sectors | |||||
| S&P/TSX Capped Telecommunication Services Index | -21.10 | 12.26 | -13.96 | 1 | Relative Weakness |
| S&P/TSX Capped Industrial Index | 9.71 | 2.22 | 5.41 | 3 | Relative Weakness |
| S&P/TSX Capped Materials Index | 21.44 | 100.84 | 9.98 | 3 | Relative Strength |
| S&P/TSX Capped Energy Index | 23.97 | 7.01 | 46.45 | 3 | Relative Strength |
| Defensive Sectors | |||||
| S&P/TSX Capped Consumer Staples Index | 18.95 | 17.08 | 0.36 | 3 | Relative Weakness |
| S&P/TSX Capped Health Care Index | 8.19 | 12.90 | 4.52 | 1 | Relative Weakness |
| S&P/TSX Capped Utilities | 13.75 | 13.75 | 5.87 | 4 | Relative Weakness |
| S&P/TSX Composite Index | 21.65 | 28.88 | 11.12 | 4 | RW to US Equites |
A capped index sets a maximum % on the relative weighting of an index component that is determined by market capitalization. S&P/TSX Capped Sector YTD performance are sourced from www.tmx.com.
*Structure: 1; Accumulation, 2; Expansion, 2C; Potential Consolidation, 3; Distribution, 4; Decline