U.S. investors can’t buy stocks directly on the Toronto Stock Exchange. However, many of the stocks that are part of the TSX Index have a dual listing on either the NYSE or NASDAQ. This means that some stocks trade in Canadian dollars on the TSX as well as in U.S, dollars on its United States equivalent exchange.
One example of a Canadian company with a dual listing is Barrick Gold. The gold mining stock trades on the Toronto Stock Exchange under the ticker symbol (TSE:ABX) and the New York Stock Exchange under the ticker symbol (NYSE:GOLD).
Another option is to buy shares of a mutual fund or exchange-traded fund (ETF) that provides exposure to companies in the TSX. There is no single fund that provides exposure to the entire TSX like the SPY does for the S&P 500. However, investors can choose a fund such as the iShares MSCI Canada ETF (NYSEARCA:EWC) to get exposure to a basket of Canadian equities. The fund is valued at over $4 billion and has been in existence for over 25 years.
A dual listing on the NYSE or NASDAQ gives the company exposure to the U.S. capital market. It also improves the liquidity of a company’s shares and can raise its public profile.
There are also benefits for investors because companies that elect to be dual listed have to follow the regulatory requirement of the U.S. markets in addition to that of their home country. This is an expense in time, money, and resources for the company. But the trade-off is worth it and usually has no effect on the company’s stock price.