Canada's Stocks Are Clobbering S&P 500

Core Viewpoint - Canada's stock market is outperforming the S&P 500, with the S&P/TSX index up approximately 0.5% year to date compared to the S&P 500's decline of 7% for the year [2][3]. Group 1: Market Performance - The S&P/TSX index is down about 6% in March, while the S&P 500 is down 7.8% for the same month [2]. - The iShares MSCI Canada ETF (EWC) is 4.7% above its 200-day moving average and nearly unchanged for the year, contrasting with the S&P 500 being 4% below its 200-day line [2]. - Despite its relative strength, Canada still lags behind other international ETFs such as those from South Korea, Brazil, and Taiwan [2]. Group 2: Economic Factors - Analysts highlight Canada's advantage as a net energy exporter, benefiting from rising global oil and gas prices, unlike Japan and Europe [3]. - Currencies of resource-rich countries like Canada are expected to be favored over those reliant on imports, bolstering the Canadian economy [4]. Group 3: Key Companies and Sectors - Major components of the Canadian index include mining and energy companies, with Agnico Eagle Mines (AEM) up nearly 13% year to date, despite a 24% drop in March [5]. - Pipeline companies TC Energy (TRP) and Enbridge (ENB) have seen increases of 14% this year, trading near all-time highs [5]. - Canadian Natural Resources (CNQ) is also near record highs, rallying 46% in 2025 [5]. - Leading stocks include Suncor Energy (SU) up 45%, Cenovus Energy (CVE) up 57%, and Nutrien (NTR) up 24% [6]. Group 4: Financial Sector Performance - The financial sector constitutes the largest portion of the S&P/TSX index at 30.7%, but it is currently underperforming [8]. - Among major banks, Royal Bank of Canada (RY) is down 5.5% in March and over 7% year to date, while Toronto-Dominion Bank (TD) has slid nearly 6% in March [9]. - Shopify (SHOP) has faced significant challenges, with shares down 30% for the year [10].