10 years of Canadian Investing

Oct 28, 2019 | Jeremy Goldfarb


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The composition of the Canadian investment landscape has seen a lot of change in 10 years. A great information piece from my colleagues at RBC GAM send out an interesting chart this morning on the TSX, and how the landscape has changed

 

As you can see in the chart below here are some major changes:

  1. Canadian energy companies used to make up a third of the TSX. Now it's just 16%
  2. Canadian Industrials were floating around 5% 10 years ago. That number has since doubled
  3. Tech companies saw a material dip, but have since surged (Shopify anyone?)
  4. Health care still makes up a very small part of the investable market --- which is why as an investor we look internationally for quality names

This tells us something. While the Canadian stock market has representation from all major sectors, it does not necessarily have from all in abundance. In order to get broad diverse exposure.....you have to look beyond the borders.