Canopy Growth Removed From S&P/TSX 60 Index

In a sign of just how far the Canadian cannabis sector has fallen, original sector heavyweight Canopy Growth Corp (TSX: WEED) is set to be deleted from the S&P/TSX 60 Index. The index represents the 60 largest and most liquid equities within the Canadian capital markets.

It was announced Friday evening by S&P Dow Jones Indices that the company would be deleted from the list, while Intact Financial Corp (TSX: IFC) would be taking the position vacation by Canopy. Following the removal of Canopy, Bausch Health Companies Inc (TSX: BHC) will be the only name within the index in the Healthcare category, while the already dominant Financials category will receive another member.

The removal of Canopy from the index is another blow for the company, which has been in the index since 2019. There is currently seven separate ETF’s that follow the index, of which the iShares S&P/TSX 60 ETF (TSX: XIU) is believed to be the largest at an AUM of $12.4 billion. Current holdings of the ETF indicate that $9.97 million worth of Canopy shares will need to be sold off once the change comes into effect. Notably, the firm was a significantly diminished position relative to other holdings, with the next smallest position being that of SNC Lavalin (TSX: SNC), valued at $24.7 million.

The changes are to be put into effect as of March 21, 2022.

Canopy Growth Corp last traded at $7.80 on the TSX.

Information for this briefing was found via S&P/TSX. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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