Investors interested in venturing into the TSX Venture Exchange but worried about wading through the jungle of mining and start-up stocks now have a new ETF option — but will have to go south of the border for it.
Index listing service Standard & Poor’s said Monday it has launched the S&P/TSX Venture 30 Index, which will track the top 30 largest and most liquid securities on the S&P/TSX Venture Composite Index.
S&P has also licensed New York-based Global X Funds to launch an ETF tracking the index on the NYSE Arca, the New York Stock Exchange’s electronic-based exchange for smaller, emerging companies.
The new ETF is expected to launch on March 17.
“With the launch of this index, investors will for the first time be able to track the performance of a segment of the Canadian stock market that features higher-yielding, more liquid, smaller-cap securities,” Abigail Etches, director at S&P Indices, said in a release.
The index will be rebalanced semi-annually, in February and August, which makes sense given the volatile and liquid nature of the exchange.
Eligible stocks must have a market cap of at least $100-million, and trade at least 100,000 shares a month during the six months before the closest index rebalance.
The index is split between materials and energy, with a total market cap of $13.48-billion.
Here are the top 10 stocks based on index weight (market cap in brackets):
- ATAC Resources Ltd. ($670.6-million)
- Canacol Energy Ltd. ($722.7-million)
- Rainy River Resources Ltd. ($973.2-million)
- Canaco Resources Inc. ($965.5-million)
- Rare element Resources Ltd. ($493.6-million)
- Ithaca Energy Inc. ($741.5-million)
- Bear Creek Mining Corp. ($846-million)
- Alange Energy Corp. ($209.3-million)
- Quest Rare Minerals Ltd. ($315-million)
- Painted Pony Petroleum Ltd. ($552-million)