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TSX to create new gold index

The Toronto Stock Exchange, home to many of North America's publicly traded mining companies, will introduce a new gold index by the end of the year. From Reuters:

The TSX and Standard & Poor's, which manages the indexes for the TSX, said the S&P/TSX Global Gold Index will be launched by the end of the year amid hopes it will be a "leading global benchmark for gold portfolios."

Once established, the index will be the first real-time global gold index and will track the top gold mining companies from around the world.

The exchange hopes to attract attention to its position as a premier listing spot for resource companies. Globeandmail.com reports the index "will pave the way for the development of index-linked investment vehicles", possibly an index-based ETF.

It seems the TSX could be looking to increase its standing among global companies, positioning themselves as an alternative to the London Stock Exchange, maybe? LSE's AIM market has been a desirable listing destination for smaller resource companies in recent years, as foreign small cap firms look to avoid the onerous listing requirements of American exchanges. Maybe TSX's global gold index will lend a little added cache?

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