TSXV stocks outperform the large cap indexes

Some stocks listed on the TSXV have had some incredible returns this past year. This is shown by the fact that the TSXV index has outperformed the large cap indexes most commonly used as benchmarks, i.e. S&P 500, Dow Jones Index, and the TSX Index. Since November 29, 2019, the TSXV has gone up 59.08%. This is a far greater increase when compared with 17.90% by the S&P 500, 7.66% by the Dow Jones, and 3.43% by the TSX.

While the index is broad, and there are winners and losers throughout the exchange, this is an indication of a previously mentioned fact that small cap stocks can outperform large cap stocks. This does take due diligence, and has risks associated with it. Speak with your investment advisor if you haven’t already.

This interview on BNN shows Sadiq Adatia of SLGI Asset Management, who believes that investors are gradually rolling out of growth and into value and small cap stocks.

With the TSXV index having performed well, individual stocks can outperform the broader index. Some of our stocks have done well. The most notable being Black Iron Inc (BKI) which we wrote our report on in July, when it was trading at 10 c. It is currently trading at 32 c, which is an increase north of 200%!!

Another stock we are very excited about is Tocvan Ventures (CSE:TOC). Tocvan is undergoing a drill program and have just completed phase 1.

We will have more interesting stocks to report very soon. There are a lot of opportunities, and for traders that have the risk appetite to invest in small cap/microcap stocks, this index should be a very encouraging sign. It can demonstrate that a good trade can yield much higher returns than what would be possible in a blue chip large cap stock.