This is the close brief for Thu, Jul 2, 2026. View latest

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Close Edition. Thursday, July 2, 2026

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$45.12
+0.04%

Headline

Emerging markets chip sell-off offsets broad gains, leaving XEQT nearly unchanged.

XEQT closed at $45.12, up just 0.04% on the day as the fund reopened after the Canadian market holiday, absorbing price discovery from markets that traded while the TSX was closed. Three of four sleeves posted gains, led by the U.S. sleeve at +0.72% and international developed markets at +0.68%, both supported by softer-than-expected U.S. jobs data that cooled expectations of a Federal Reserve rate hike. The emerging markets sleeve fell 3.59%, contributing -0.18 pp and nearly erasing those gains, as a broad chip-share sell-off swept through Asian markets. The net result was a session where geography mattered far more than direction.

How large is today's move?

Typical day · Today's +0.04% move is <0.1× 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

    24.87% of XEQT

    • XIC.TO
    +0.36% +0.09 pts to XEQT

    The Canadian sleeve rose 0.36%, contributing +0.09 pp to XEQT. The gain was concentrated in materials, where Canadian materials equities rose 2.61% within the tracked universe, consistent with gold rising 1.27% on the session. Energy added further support at +0.67%. Canadian financials and industrials declined, limiting the sleeve's overall advance.

    Canada market region icon

  • United States

    45.55% of XEQT

    • XTOT.TO
    • ITOT
    +0.72% +0.33 pts to XEQT

    The U.S. sleeve gained 0.72%, the largest positive contribution to XEQT at +0.33 pp. Health care rose 2.63% and financials added 1.53% among the sectors tracked, both benefiting from the prospect of a Fed on hold after a weak jobs report. U.S. technology fell 2.71% within the tracked segments, a notable drag that the defensive sector strength more than offset at the sleeve level. A strengthening Canadian dollar reduced returns on USD assets, making the CAD-listed XTOT and the currency-adjusted ITOT diverge significantly on the session.

    United States market region icon

  • Intl Developed

    24.37% of XEQT

    • XEF.TO
    +0.68% +0.17 pts to XEQT

    International developed markets rose 0.68%, adding +0.17 pp to XEQT. European equities drove the sleeve, with the UK, Germany, Switzerland, and France each rising more than 2% among the areas tracked, as softer U.S. payrolls data pushed European shares to record highs and reduced rate-hike expectations. The JPY/CAD cross rose 1.15%, suggesting yen strength that likely supported Japanese returns beyond the segments captured here.

    Intl Developed market region icon

  • Emerging Mrkts

    5.01% of XEQT

    • XEC.TO
    -3.59% -0.18 pts from XEQT

    The emerging markets sleeve fell 3.59%, subtracting -0.18 pp from XEQT and nearly cancelling the combined gains of the other three sleeves. South Korean equities declined 2.89% among the tracked exposures, the largest single drag, as a chip-share sell-off swept across Asian markets. Taiwan and China also fell. India and South Africa advanced, but their combined contribution was insufficient to offset the losses concentrated in North Asian technology-heavy markets.

    Emerging Markets market region icon

Colored bars represent biggest contributors to XEQT's move today (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 sleeves posted gains on the session, but a 3.59% decline in the emerging markets sleeve absorbed nearly all of that progress, leaving XEQT essentially flat. The day illustrates a structural tension within the fund: a 5% weight in emerging markets can meaningfully offset gains spread across the other 75% of the portfolio when losses are concentrated enough. For a long-term holder, the more relevant observation is that the fund's architecture held together under opposing forces, with no single directional story dominating the full portfolio.

Signals

  • 01

    U.S. sector rotation offsets tech drag

    The U.S. sleeve gained 0.72% while U.S. technology fell 2.71% among the sectors tracked, with health care (+2.63%) and financials (+1.53%) more than covering the gap. This rotation within the sleeve toward defensive and rate-sensitive sectors, consistent with a softer jobs report reducing rate-hike pressure, is worth watching as a potential shift in sector leadership inside the fund's largest weight.

  • 02

    Canadian dollar strength mutes U.S. returns

    CAD/USD rose 0.18%, causing the CAD-listed XTOT and the currency-adjusted ITOT to diverge by 1.71 percentage points on the session. A strengthening Canadian dollar reduces the translated value of U.S.-dollar assets held inside XEQT, a headwind that partially muted the U.S. sleeve's contribution relative to what USD-denominated returns alone would suggest.

  • 03

    EM chip rout concentrates session losses

    The emerging markets sleeve's 3.59% decline on a day when three other sleeves posted gains illustrates how a 5% allocation can still swing XEQT's net result by nearly 0.18 pp when losses are sharp enough. Despite today's decline, the sleeve remains up 22.64% year-to-date, well ahead of every other sleeve, so the session represents a partial drawdown within an otherwise strong run rather than a reversal of trend.

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Key events from the last 20 days

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Jun 4 to Jul 2 · $45.06 → $45.12

+0.13%