As 2018 winds down with another bout of market volatility, investors may be seeking advice about the best candidates in their portfolios for tax-loss selling.
National Bank Financial points out that with 74% of the S&P/TSX Composite’s names seeing negative price returns for the year to date—133 of them declining by more than 10%—there’s no shortage of options.
In its latest ETF strategy note, the bank has put together a sector-by-sector list of 38 stocks that have seen such declines and have approximately 3% minimum weight inside a corresponding ETF and at least 50% return correlation.
Not surprisingly, basic materials and energy take up a large share, but consumer staples, financials and marijuana aren’t spared.
The last day to recognize a capital loss for tax purposes this year is Dec. 27, the report says.
Read the full report here.