The Toronto Stock Exchange has always been known as the index that lacks growth. It’s why many investors head to the markets down south to gain exposure to more high profile growth stocks. However, the TSX has released a program that highlights some of the best performing stocks over the past years, and shows you that growth can be had right here at home.
Late last week, the TSX announced the creation of the TSX30. The list is comprised of the highest returning stocks over the last three years in terms of dividend-adjusted share price.
What stocks make up the TSX 30?
The heaviest allocation in the TSX30 goes to the materials sector, in particular mining stocks. However, Cannabis stocks make up the largest portion of the top end of the list, with Canopy Growth (TSX:WEED), Village Farms International (TSX:VFF), Aphria (TSX:APHA) and Neptune Wellness (TSX:NEPT) all cracking the top 10.
The complete list of the TSX 30:
|3||3||Village Farms International||TSX:VFF|
|4||4||Kirkland Lake Gold||TSX:KL|
|8||8||Neptune Wellness Solutions||TSX:NEPT|
|10||10||North American Construction Group||TSX:NOA|
Highlights from the TSX 30
The Toronto Stock Exchange created the TSX 30 at a time when the index is trading near all-time highs and breaking records numerous times in September. Analysts have often criticized the TSX for being a no-growth index, but it is clear there is growth if you’re willing to actively look.
What do I mean by actively look? Most retail investors see the same names pop up on the news every single day. The index is dominated by popular industries such as the oil and gas and financial sectors. However, besides Goeasy Ltd (TSX:GSY), you won’t find a single energy or financial stock on this list.
Instead, you’ll see stocks outside of the norm, such as auto repair company Boyd Income Group (TSX:BYD.UN) and funeral home operator Park Lawn Corp (TSX:PLC). The list aims to show retail investors that there is more than meets the eye with the TSX.
Canopy takes first place, and by a landslide. The company has returned over 1800% to investors over the last 3 years, substantially more than the runner up on the TSX30 Shopify, which has returned 883%.
One other highlight? 8 of the companies listed on the TSX30 were once stocks trading on the TSX Venture and have since graduated to the major index.
I’ll be tracking this list, and I appreciate the TSX introducing it. The whole idea of Stocktrades.ca is to highlight growth stocks, and it is inherently tough to do so with an index that has the reputation the TSX does. I hope this is a step forward in eliminating that.