Forty-one out of forty-four of Morningstar Canada Fund Indices, measuring the aggregate return of funds, increased over the last month, according to Morningstar Research. Twenty of the indices increased by over two per cent.
Morningstar’s February 2017 preliminary performance report, released March 2, found that most stock market indexes outside Canada were positive, as the Canadian dollar depreciated. This resulted in strong performance for all foreign equity funds categories in Canada.
Greater China Equity and US Equity
The indices tracking Greater China Equity and US Equity indicated a 5.1 per cent increase in February. The S&P 500 Index in the US had a total return of 4 per cent, and the US dollar gained 1.7 per cent on the Canadian dollar. Stock markets in Shanghai, Hong Kong and Taiwan saw an increase of 2.6 per cent, 1.6 per cent and 3.2 per cent respectively.
Other top performers included the index tracking Emerging Markets Equity funds, which saw a 4.6 per cent increase, and the Asia Pacific Equity fund index with a 3.7 per cent increase. The European Equity index rose 2.8 per cent, International Equity 2.9 per cent and Global Equity fund 4 per cent.
Precious metals, energy and natural resources see declines
The Precious Metals Equity, Energy Equity, and Natural Resources Equity, were down 2.1, 2.3 and 2.4 per cent respectively. The energy and materials sector, making up one third of the Canadian stock market, performed the worst on the Toronto Stock Exchange, with a decrease of 2.4 and 3.7 per cent respectively.
For more information, the complete report is available here.