The TSX Composite Index, officially known as the S&P/TSX Composite Index, is the benchmark Canadian stock market index, representing the largest companies listed on the Toronto Stock Exchange (TSX). It covers approximately 70% of the market capitalization of the TSX, providing a comprehensive view of the performance of major Canadian industries, including finance, energy, and materials.

The index is market capitalization-weighted, meaning companies with larger market values have a greater impact on the index’s performance. To be included in the TSX Composite, companies must meet specific criteria regarding market capitalization, liquidity, and trading volume. The index undergoes regular reviews and rebalancing, typically quarterly, to ensure it accurately reflects the market and includes the most relevant companies.

Widely used by investors and analysts, the TSX Composite Index serves as a key indicator of the Canadian economy’s health and is the basis for various financial products, including ETFs and mutual funds. Its broad coverage and focus on major sectors make it an essential tool for tracking and understanding the Canadian equity market.