Canada’s equity markets aren’t just underperforming the S&P 500—they’re structurally disadvantaged. The gap in returns is widening, driven by fundamental weaknesses in Canada’s economic makeup, sector concentration, and sluggish productivity growth.

The S&P 500 Dispersion is signaling a notable shift in market dynamics. While broader participation initially benefits equal-weighted strategies, high dispersion increasingly signals outperformance of market-cap-weighted indices.