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  • Writer's pictureTed Ohashi

CannTrust to be removed from S&P/TSX Index (TSX: TRST)

The latest bad news for CannTrust Holdings (TSX: TRST) (NYSE: CTST) is that the company will be removed from the S&P/TSX Composite Index at the end of September.

This is bad news because it reinforces just how far TRST has fallen in the eyes of the investment community and how hard it will be to simply regain their position let alone move past it. In a more practical sense, there are a growing number of investors that want to invest in Canada but without paying fees to an active investment manager that may or may not perform as well as the average.

As a result, they will invest in an Exchange Traded Fund (or private fund) that tries to simply replicate the return from the S&P/TSX Composite Index. So removing TRST from the index means any ETFs that still own TRST will follow suit by selling their shares. It looks like another tough month for TRST shareholders. I wonder if this is something that TRST should have reported as part of its Default Status Report?

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