Leading the charge

The pandemic had uneven effects on the sectors in Canada's capital market. According to S&P Dow Jones Indices, the S&P/TSX Capped Information Technology Index was the biggest outperformer during this period. It also experienced lower volatility compared to other sectors, which resulted in a higher weight of the Information Technology sector in the S&P/TSX Composite Low Volatility Index. This was due to increased demand from their services including e-commerce, software, semiconductors, communications and equipment amid staying-at-home situations. Shopify, after listing only 5 years ago, is now the largest company by market capitalization in the S&P/TSX Composite Index. Other technology stocks also performed well, with the total market capitalization of the top 10 technology stocks reaching nearly $250B as at June 30, 2020. To learn more about how Canadian tech is facilitating the global transition to digital, read our Sector Head's POV here. For more information about financings in the technology and other sectors, please see our July 2020 MiG Report.

Pandemic Affects Canadian Sectors Differently: Evidence from the Information Technology Sector

Big Sector Shifts in Low Volatility Composition