What is the S&P/TSX Venture Composite Index?

The S&P/TSX Venture Composite Index is a stock market index managed jointly by Standard & Poors and the Toronto Stock Exchange. It gives investors a broad indicator of the performance of Canadian micro cap companies listed on the Toronto Venture Exchange with a strong bias toward the materials sector.

Where have you heard about the S&P/TSX Venture Composite Index?

Your broker can give you information about investing in foreign companies. Canada is a developed market and has particularly strong financials, energy and materials sectors. The broader S&P/TSX Composite Index is the better-known benchmark, but the S&P/TSX Venture Composite Index specifically tracks micro cap companies, particularly in the materials sector.

What you need to know about the S&P/TSX Venture Composite Index.

The S&P/TSX Venture Composite Index provides exposure to the Canadian micro-cap sector. The number of companies making up the index varies, but as of August 2017 stood at 419. The index is overwhelmingly weighted toward the materials sector and therefore often moves in tandem with the price of mineral commodities, particularly the price of gold. There is no easy way to invest in the index. Several ETFs launched to try and track the index, but they have all delisted due to significant tracking errors caused by the tiny size and illiquid trading of many of the constituent stocks.