May 2025 marked a continued period of gains for the Canadian and US markets. The S&P/TSX increased by 5.6%, while the S&P 500 increased by 6.3%. In contrast, the MSCI ACWI ex-USA increased 4.7%.
The 12-month performance metrics highlighted the S&P/TSX has now outpaced the S&P 500 with a 21.0% annual gain, compared to the MSCI ACWI ex-USA’s 14.4%. Both indices continue to outperform the S&P 500, which recorded a 13.5% one-year return.
The NQICAT index underperformed the broader market, registering a monthly increase of 4.5% in May and a 7.3% annual performance.
Sector-level analysis for May identified the best and worst performers. Industrials, Consumer Discretionary, and IT led the gains, rising by 8.8%, 8.8%, and 7.5%, respectively. Conversely, Health Care, Utilities, and Consumer Staples experienced the lowest returns, falling by -3.0%, 1.9%, and 1.8% respectively.
Within the NQICAT, the top three gains were found in BRP INC (DOO.TO), which rose by +29.4%, while Stella Jones Inc (SJ.TO) and National Bank of Canada (NA.TO) gained +14.8% and +12.5%, respectively. On the other hand, goeasy ltd. (GSY.TO) experienced the lowest return with a decline of -4.0%, followed by Labrador Iron Ore Rty Corporation (LIF.TO) at -3.0% and Alimentation Couche-Tard (ATD.TO) at -1.1%.
