Canopy Growth to be added to S&P/TSX60 Index (TSX: WEED)
Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) will be added to the S&P/TSX60 Index (TSX60). The TSX60 combined with the S&P/TSX Completion Index forms the S&P/TSX Composite Index. By definition, the TSX60 is comprised of 60 large Canadian companies so Goldcorp (TSX: G) will be removed from the index. Decisions as to which stocks are included in an S&P index are made by the Canadian S&P Index Committee.
The inclusion of WEED in the TSX60 is an acknowledgement of the success of the company and the cannabis industry but it is not the only reason WEED shares were up over 5% on the news. There are exchange traded funds (ETFs) that will now be buying WEED shares and selling G shares to keep their portfolios in line with the index. Examples of ETFs effected include the S&P TSX 60 Index ETF (TSX: XIU) and the Horizons S&P TSX 60 Index ETF (TSX: HXT). In addition there are many private funds, sometimes referred to as closet index funds, that mimic the TSX60 to some degree.
It’s another of a series of incredible firsts for Canopy Growth and the cannabis industry.