Although the majority of my portfolio is allocated towards American companies, there are TSX-listed companies that I like a lot. In this article, I’ll discuss my top three TSX portfolio holdings going into 2022. I intend to keep holding onto these three positions for the long term, as I believe they could be worth a lot more in a few years’ time.
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My top TSX pick
I write about Shopify (TSX: SHOP)(NYSE:SHOP) a lot. In fact, last weekend, I wrote about the stock being my top pick for 2022. This isn’t without reason. I really do believe in the company, and this is evident in my own portfolio. My Shopify position is the largest of all TSX-listed companies in my portfolio. Although it’s already the third-largest position overall, I see myself adding to this position in the future. After all, Motley Fool co-founder David Gardner famously reminds us to water our flowers and not our weeds.
Shopify is a leading player within the quickly growing ecommerce industry. Using its platform, merchants of all sizes can easily sell products online. In Q2 2021, Shopify surpassed Amazon for the first time in terms of customer traffic, when it recorded an average of 1.16 billion monthly active users. As e-commerce continues to penetrate the broader retail industry, we could expect to see even more users flock to Shopify. It’ll also be interesting to see how the company’s new partnership with Spotify will affect sales and traffic numbers.
This ETF is a must-have for younger investors
The second largest TSX-listed position in my portfolio is an ETF. Evolve FANGMA Index ETF (TSX: TECH) is the first ETF of its kind, tracking the performance of the six American big tech companies. For those that are unfamiliar, that includes Meta Platforms (Facebook), Apple, Netflix, Alphabet (Google), Microsoft, and Amazon.
This ETF is a great position for younger, and newer, investors because it provides an opportunity to see a lot of growth while spreading your risk across several companies. Adding this ETF to your portfolio will also give you exposure to the American stock market, which provides two benefits. First, the American stock market tends to see a lot more growth than the Canadian market. Second, it provides your portfolio with geographic diversification.
A solid dividend stock
The third-largest TSX-listed position in my portfolio belongs to Bank of Nova Scotia (TSX: BNS)(NYSE: BNS). Like many other Canadians, I enjoy investing in the Canadian banking industry because of its reliability. I have been wanting to add dividend stocks to my portfolio, and choosing one of Big Five banks seemed like an easy choice.
Bank of Nova Scotia has significant exposure to the Pacific Alliance. That is a region which includes the countries of Chile, Columbia, Mexico, and Peru. It’s previously been estimated that the Pacific Alliance could grow at a faster rate than Canada and the U.S. over the coming years, due to a rapidly growing middle class. If that’s the case, then Bank of Nova Scotia could see massive growth. That’s a nice bonus to the attractive dividend the stock already offers to investors.
