This is the midday brief for Tue, Jun 23, 2026. View latest

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Midday Edition. Tuesday, June 23, 2026

Curated market context for passive investors.

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$45.10
-0.78%

Headline

A global AI and tech sell-off pulls XEQT down 0.78% as three sleeves retreat

XEQT is down 0.78% in midday trading, pulled lower by a global technology sell-off that originated in South Korea's chip sector and spread across Asia, Europe, and Wall Street. The heaviest drag has come from the international developed and emerging market sleeves, which together account for roughly 0.56 percentage points of the fund's decline. Canada, by contrast, is nearly flat, with gains in consumer staples and financials offsetting steep losses in materials. The VIX, a measure of near-term U.S. equity volatility, has surged 15.3% so far, consistent with the broad risk-off tone visible across all four sleeves.

How large is this afternoon's move?

Typical day · This afternoon's -0.78% move is 1.1× the 20-day average move.

This scale measures size, not what to do. Larger moves are a normal part of holding a global all-equity fund.

The Regions

  • Canada

    24.89% of XEQT

    • XIC.TO
    -0.02% -0.00 pts from XEQT

    Canada's sleeve is essentially unchanged on the session, masking significant internal dispersion. Materials have fallen 3.08% among tracked sectors, consistent with copper dropping 3.4%, while consumer staples have surged 4.82%, providing a substantial offset. Financials, the sleeve's largest tracked weight at roughly 35%, are marginally positive, which has been enough to keep the sleeve near flat despite the pullback in base metals and technology.

    Canada market region icon

  • United States

    45.04% of XEQT

    • XTOT.TO
    • ITOT
    -0.48% -0.21 pts from XEQT

    The U.S. sleeve is down 0.48%, contributing 0.21 percentage points to XEQT's decline. Technology, which represents roughly 36% of the tracked U.S. exposure, has shed 3.34% and accounts for the overwhelming share of the sleeve's drag. Health care and consumer staples are both up more than 1%, providing partial relief, and communication services are modestly positive, but those gains fall well short of offsetting tech's weight.

    United States market region icon

  • Intl Developed

    24.70% of XEQT

    • XEF.TO
    -1.31% -0.32 pts from XEQT

    The international developed sleeve is down 1.31%, the largest sleeve decline in percentage terms and the single biggest contributor to XEQT's loss at 0.32 percentage points. Japan accounts for the most damage within the tracked exposure, falling 4.09%, with the Nikkei down more than 3% as the tech sell-off spread from Korea. The Netherlands is also down 3.33%, reflecting technology-sector concentration, while Switzerland is the lone positive market among the areas tracked, rising 0.56%.

    Intl Developed market region icon

  • Emerging Mrkts

    5.20% of XEQT

    • XEC.TO
    -4.51% -0.23 pts from XEQT

    Emerging markets are down 4.51%, contributing 0.24 percentage points to XEQT's loss despite the sleeve's relatively small 5.2% weight. South Korean equities have fallen 10.64% among the tracked exposure, with circuit breakers triggered as chipmakers led the decline; the Maeil Business Newspaper reported the largest single-day point drop in the KOSPI's history. Taiwan-listed equities are down 4.86%, compounding the semiconductor-driven weakness, while China and India are also negative.

    Emerging Markets market region icon

Colored bars represent biggest contributors to XEQT's move this afternoon (threshold = ±0.1 percentage points). Returns are daily ETF price moves for tracked regional or sector categories and may differ slightly from raw index movements.

The Hold Line

Three of four sleeves are carrying meaningful losses into the afternoon, yet the breadth of the decline across geographies and sectors is itself informative: this is a coordinated risk-off move rather than a structural break in any one market. Canada's near-flat reading illustrates how the fund's domestic weight can act as ballast when the pressure is concentrated in technology-heavy international markets. The session is well within the range that long-term passive investors should expect to absorb without adjusting course.

Signals

  • 01

    Korea chip rout exceeds circuit breaker

    South Korean equities are down more than 10% in the tracked emerging markets exposure, a move large enough to trigger circuit breakers and register as the KOSPI's largest recorded single-day point loss. Even with the emerging markets sleeve at just 5.2% of XEQT, a loss of this magnitude translates to a meaningful 0.24 percentage-point drag, underscoring how tail events in concentrated sectors can punch above their weight.

  • 02

    VIX surges 15% on broad risk-off

    The VIX, which tracks implied volatility on U.S. equities and rises when investors expect larger near-term swings, is up 15.3% so far in the session, reaching 18.91. That reading is not historically extreme, but the velocity of the move is consistent with the breadth of selling across all regions, and it signals that options markets are pricing a more uncertain near-term environment than yesterday.

  • 03

    U.S. sector rotation limits sleeve damage

    U.S. technology is down 3.34% among tracked sectors while health care and consumer staples are each up more than 1%, a rotation pattern that has cushioned the U.S. sleeve's headline loss to just 0.48%. For a holder of XEQT, this sector-level offset means the U.S. sleeve is absorbing the tech shock more narrowly than the international developed and emerging market sleeves, where the losses are broader across countries.

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