Small caps have been on a tear, outperforming large caps by a significant margin.
In 2020, the S&P/TSX SmallCap Index climbed 10 per cent, 12.9 per cent including dividends, while the S&P/TSX Composite Index was relatively flat, rising just 2.2 per cent or 5.6 per cent including dividends.
So far this year, small caps have continued to outperform. Year-to-date, the S&P/TSX SmallCap Index has rallied 9.7 per cent, while the S&P/TSX Composite Index has delivered a price return of 5.9 per cent.
The S&P/TSX SmallCap Index is positioned to benefit from rebounding economic growth with cyclical stocks dominating the Index.
The top three sectors in the TSX SmallCap Index are Materials, Energy and Industrials with weightings of 24 per cent, 17 per cent and 13 per cent, respectively, as of the end of February. In contrast, the top sector in the S&P/TSX Composite Index is Financials with a weighting of 32 per cent with Industrials, Materials and Energy each at approximately12 per cent.
Listed below is a complete list of all 200 companies in the S&P/TSX SmallCap Index grouped by sector and ranked according to their forecasted price returns (excluding dividend or distribution income). All data is as March 5.
In the Materials category, although NEO was ranked 42/50, its projected return is 16% ($20.88).