February 2025 marked a period of increased market volatility. The S&P/TSX declined by 0.4%, while the S&P 500 fell by 1.3%. In contrast, the MSCI ACWI ex-USA posted a gain of 1.4%.
The 12-month performance metrics highlighted a shift in relative performance. The S&P/TSX has now outpaced the S&P 500 with a 22.5% annual gain, compared to the S&P 500’s 18.4% increase. Both indices outperformed the MSCI ACWI ex-USA, which recorded a 10.2% one-year return.
The NQICAT index underperformed the broader market, registering a monthly decline of 2.7% in February and a 4.5% annual performance.
Sector-level analysis for February identified the best and worst performers. Utilities, Materials, and Consumer Staples led the gains, rising by 3.4%, 1.9%, and 1.6%, respectively. Conversely, Healthcare and Information Technology experienced the largest declines, falling by 6.2% and 5.1%, respectively.
Within the NQICAT, the top three gains were found in Ritchie Bros. Auctioneers (RBA.TO) which rose by +13.9%, while Intact Financial Corporation (IFC.TO) and Dollarama Inc. (DOL.TO) gained +10.4% and +9.7%, respectively. On the other hand, TFI International Inc. (TFII.TO) experienced the most significant loss with a decline of -31.5%, followed by Hammond Power Solutions Inc. (HPS-A.TO) at -18.1% and BRP Inc. (DOO.TO) at -17.5%.
February Transactions in the U.S. Portfolio
Our Stockpointer® US model portfolio executed the following strategic transactions:
We divested in Ingredion Inc. (INGR) and sold UnitedHealth Group Inc. (UNH)
We bought Yum! Brands Inc. (YUM) and acquired Ameriprise Financial Inc. (AMP).
Rebalancing
On the rebalancing side, we reduced exposure in Meta Platforms Inc (META)
To limit large sizing in the new additions, each of these stocks received about 0.75% weighting increase. The stocks were chosen based on their high SP score and relatively low weight in the portfolio
- Home Depot (HD)
- Northrop Grumman Corp (NOC)
- City Holdings (CHCO)
- W.R. Berkley Corporation (WRB)
