Market Update
All index returns are total return (includes reinvestment of dividends) and are in Canadian Dollars unless noted. Sources: *Sources: MSCI, FTSE, TMX, S&P
The second quarter of 2025 was rather volatile with the Trump administration threatening tariffs on a global scale, however global equity markets still saw solid performances.
Canadian stocks gained momentum as the S&P/TSX Composite Index was up 8.6%, and the S&P/TSX Small Cap gained 13.8%. The US stock market indexes also had a profitable quarter; the S&P500 increased 10.3% in the quarter. The tech heavy Nasdaq Composite Index rebounded after a rough first quarter, increasing 18.0%, while the small cap Russell 2000 Index climbed 8.5% in the quarter.
EAFE stocks (Europe, Australasia, and Far East) continued a to see steady growth as they gained 6.0% in the quarter, with European stocks gaining 6.4%. Japan’s Stock Index changed course after a rough first quarter, gaining 12.4% in the quarter, and emerging market stocks had a profitable quarter with the MSCI Emerging Markets Index gaining 10.7%.
The Bank of Canada held rates steady in the quarter, The FTSE Canada Universe Bond Index decreased 0.57% for the quarter, while the FTSE Canada Short Term Bond Index was up 0.48% for the quarter. With The Fed holding interest rates steady, The Bank of America (BoA) indexes saw negative yields in the quarter as the ICE BoA AAA Corporate Index declined 4.2%, the ICE BoA BBB Corporate Index declined 3.3%, and the ICE BoA CCC Corporate Index was down 1.1%.
Real Estate Investment Trusts (REITs) also had a profitable quarter as the S&P/TSX Capped REIT Index increased 7.4%.
Oil saw a decline in the quarter, down 8.7%. Meanwhile, the diversified Bloomberg Commodities Index was down 2.4% in the quarter.
Portfolio Performance – Q2 2025
With the exception of the risk level 2 portfolios, the Socially Responsible portfolios were the top performer in the quarter.
The high interest savings portfolio returned +0.5% in Q2 2025.
For more details about the performance of our portfolios, visit our website or see our portfolio factsheets here.
Disclosure:
The performance figures above are a time weighted composite of all accounts being managed to the stated risk level, and include ModernAdvisor management fees plus GST/HST, where applicable. Personal portfolio performance experience may vary. All returns are stated in Canadian dollar terms unless indicated otherwise.
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