The TSX Index is definitely beating the S&P 500 for 2025, a uncommon achievement that Canadian buyers shouldn’t get used to, particularly as the bogus intelligence (AI) growth continues to nudge mega-cap tech to spectacular efficiency. Certainly, the S&P 500 has the mega-cap AI tech titans at its aspect. And whereas the AI commerce may very well be in for a cooldown, I don’t imagine that the TSX Index’s S&P-beating methods will maintain for the lengthy haul.

Not to remove from the TSX’s outperformance, however as a Canadian investor, I’d look to remain diversified on each side of the border and never look to “play” one index come what may. Arguably, I feel the S&P 500 mixed with the TSX Index makes a potent combo. On their very own, the S&P 500 or the TSX Index will not be as diversified as an investor would suppose. Certainly, the S&P 500 could have sufficient shares (500) to be thought-about greater than diversified.

TSX or S&P 500? Why not personal each, plus some particular person shares that look low-cost regardless of their AI progress catalysts?

Nonetheless, a lot of the publicity is concentrated on the high, with the more-than-$1 trillion tech titans having means an excessive amount of affect on the place the main index heads on any given day.

As for the TSX Index, it’s too mild on know-how and too heavy on banks, pipelines, and miners. When mixed, although, the S&P 500 and TSX combo packs a tech punch with a pleasant jolt to the cheaper sectors (vitality and financials), making for smoother crusing on the way in which down whether it is tech that feels probably the most ache when the following correction comes in addition to a decent quantity of dividends (the TSX Index’s 2.6% yield is way extra beneficiant than the S&P 500’s 1.1%) flowing in.

As for my most popular TSX ETF, I’m a fan of Vanguard FTSE Canada Index ETF (TSX:VCE). It’s a low-cost approach to wager on Canada whereas getting paid a 2.61% yield for doing so. As for what’s subsequent, no one is aware of. Both means, I suppose including some particular person worth names with AI catalysts might make a whole lot of sense, particularly since there are actual earnings features available from the revolutionary know-how.

Apple

Apple (NASDAQ:AAPL) stands out as a Magnificent Seven year-to-date underperformer which may be value scooping up as shares try to succeed in breakeven on the yr (shares are nonetheless down 2% yr to this point). Undoubtedly, the newest iPhones didn’t actually excite buyers when Apple revealed them to the world via its keynote. In actual fact, shares slipped as buyers questioned whether or not such gadgets would entice customers to improve.

Certainly, the iPhone 17 Professional noticed a giant design change and a shift again to aluminum from titanium for extra environment friendly cooling. Whereas I’m not the most important fan of the design, I need to say that it’s an extremely practical system for “professional” use circumstances. And whereas the iPhone 17 base mannequin wasn’t all too stunning, I need to say it packs a whole lot of succesful {hardware} for a aggressive value. Certainly, the iPhone 17 base could very nicely provide among the finest bangs for the buck on the market. Lastly, Apple additionally pulled the curtain on the iPhone Air, its thinnest design but, which, I feel, may very well be a surprisingly sizzling vendor.

In any case, iPhone 17 lead occasions are up, and it paints an image of better-than-expected demand. Personally, I’m most interested by how the impressively skinny iPhone Air will do relative to the Professional. Time will inform. Both means, there wasn’t a lot on the AI entrance to get enthusiastic about within the newest keynote. Nonetheless, that might change in 2026, when Siri receives a facelift.

Backside line

The TSX Index could or could not beat the S&P 500 for the remainder of the yr. Both means, I’d try to personal each indices in addition to particular person names which may have underappreciated AI catalysts that loom. Apple inventory appears dirt-low-cost after doing nothing this yr, and I feel it’s able to rise once more in 2026 as its new gadgets look to promote nicely whereas new AI improvements come on-line.