Aside from the major milestone, this also means that the funds tracking the S&P/TSX 60 Index will be buying millions of dollars worth of Canopy Growth shares.
What is the S&P/TSX 60 Index?
The S&P/TSX 60 offers money managers a portfolio index of the large-cap market segment of the Canadian equities market. The index is also structured to reflect the sector weights of the S&P/TSX Composite.
If you couldn’t guess by the name, all of the constituents of the S&P/TSX 60 Index are listed on the Toronto Stock Exchange, which also serves as the distributor of both real-time and historical data for this index.
The addition of Canopy Growth Corp. is a big deal because there are billions of dollars in funds that track the S&P/TSX 60 Index.
Funds Tracking the S&P/TSX 60 Index
Currently, there are three major ETFs that track the S&P/TSX 60 Index:
- The Horizons S&P/TSX 60 ETF (TSX:HXT) (OTC:HRZSF) currently has $1,917,192,157 CAD in AUM invested across S&P/TSX 60 Index constituents.
- The iShares S&P/TSX 60 Index ETF (TSX:XIU) (OTC:IUTSF) currently has even more under management, with $8,494,769,490 CAD in AUM invested across S&P/TSX 60 Index constituents, with its smallest holding valued at $27,320,649.72 CAD.
Additionally, there’s an ETF on the LSE that tracks the S&P/TSX 60 Index and leveraged products as well.
The official addition of Canopy Growth to the S&P/TSX 60 Index will be effective prior to the commencement of trading on Thursday, April 18th, 2019. After that, we expect to see Canopy Growth Corp. become a holding of these funds. In the meantime, be sure to subscribe to Marijuana Stock Updates here and Canopy Growth Corp. Updates here so you never miss an important update.
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