The Canadian Investor Why the TSX Is Crushing the S&P 500 This Year
Oct 9, 2025
The podcast dives into the impressive year-to-date performance of the TSX, which is outpacing the S&P 500, driven largely by a surge in gold and mining sectors. A detailed analysis of AMD's deal with OpenAI highlights the burgeoning AI arms race. The discussion then explores Constellation Software's leadership transition and capital strategies. Finally, the hosts debate the significance of economic moats and how effective management can influence their longevity, even amid disruptive technologies.
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Why The TSX Is Leading YTD
- The TSX is outperforming the S&P 500 this year largely due to a massive rally in materials and gold miners.
- Currency and sector composition drive big differences between Canadian and US index returns.
Gold Miners Power TSX Returns
- Materials on the TSX are the main driver, up roughly 79% year-to-date because of gold miners' gains.
- Large moves in a 15% weight sector can dramatically lift the entire index.
Sector Mix Explains Index Gaps
- The US sector mix skews toward technology and communications, so the S&P 500's winners differ from the TSX.
- Sector composition matters more than country when comparing index performance.