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Open Edition. Tuesday, August 18, 2026

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$45.84
-0.52%

Headline

All four XEQT sleeves decline in early trading as AI stocks extend their retreat

XEQT was down 0.52% in early trading at $45.84, with all four sleeves moving lower simultaneously. The U.S. sleeve was the dominant drag, contributing roughly 0.31 percentage points to the decline, as AI-related stocks extended their retreat and pulled technology sharply lower within the sleeve. The internationally developed and emerging market sleeves added further pressure, while Canada's decline was the mildest of the four. Rising bond yields globally, with inflation and fiscal concerns cited across markets, set a cautious tone heading into the session.

How large is this morning's move?

Typical day · This morning's -0.52% move is 0.8× 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

    25.64% of XEQT

    • XIC.TO
    -0.29% -0.07 pts from XEQT

    Canada's sleeve was down 0.29%, contributing about 0.07 percentage points to XEQT's early decline, the smallest drag among the four regions. Financials and materials were the main sources of weakness among the sectors tracked, while energy added a meaningful offset, rising 0.92% in early trading consistent with WTI crude gaining 0.68%.

    Canada market region icon

  • United States

    45.07% of XEQT

    • XTOT.TO
    • ITOT
    -0.69% -0.31 pts from XEQT

    The U.S. sleeve fell 0.69% and was the single largest contributor to XEQT's decline. Among the sectors tracked, technology dropped 2.33%, accounting for most of the sleeve's loss. Health care was a meaningful counterweight, rising 1.87%, while financials and energy also advanced modestly. The net effect was still a notable drag, as technology's weight within the sleeve made its move difficult to offset.

    United States market region icon

  • Intl Developed

    24.38% of XEQT

    • XEF.TO
    -0.64% -0.16 pts from XEQT

    The international developed sleeve was down 0.64%, contributing 0.16 percentage points to XEQT's early move. Japan was the largest single drag among the markets tracked, falling 1.93% and snapping a five-session run, with geopolitical tensions and rising global bond yields weighing on sentiment. The UK and Australia bucked the trend with modest gains, while continental European markets, including Germany and France, were softer in cautious early trade.

    Intl Developed market region icon

  • Emerging Mrkts

    4.74% of XEQT

    • XEC.TO
    -1.90% -0.09 pts from XEQT

    Emerging markets posted the sharpest sleeve decline at 1.90%, though at under 5% of XEQT the contribution was approximately 0.09 percentage points. South Korea fell 5.44% among the areas tracked, with intraday swings tied to U.S. and Japanese bond yield pressures alongside Middle East uncertainty. Taiwan equities also declined 2.80%, with dealers citing profit-taking ahead of August futures settlement. China was nearly flat, and Brazil provided a small offset.

    Emerging Markets market region icon

Colored bars represent biggest contributors to XEQT's move this morning (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

All four sleeves moving lower in the same direction is worth noting, but today's 0.52% decline is below the recent 20-day average absolute move of 0.64%, placing it in ordinary territory. The most concentrated drag comes from a single factor: U.S. technology weakness, which absorbed most of the U.S. sleeve's decline. Energy's gains in both Canada and the U.S. provided partial offsets, and emerging markets, despite sharp moves in South Korea and Taiwan, represent less than 5% of XEQT. The session reflects a reset in risk appetite, not a structural shift.

Signals

  • 01

    U.S. tech dominates sleeve drag

    U.S. technology fell 2.33% among the sectors tracked in the U.S. sleeve, contributing more than the entire U.S. sleeve's net loss of 0.69%, meaning gains in health care, financials, and energy partially cushioned the blow but could not absorb it. For a long-term XEQT holder, technology's outsized weight in the U.S. sleeve means single-sector moves of this magnitude can define the session even when most other sectors are positive.

  • 02

    Rising bond yields pressure sentiment

    The 10-year U.S. Treasury yield, a benchmark for the cost of long-term borrowing, edged up to 4.728% while Reuters reported a global bond selloff driven by inflation and fiscal concerns spreading from the U.S. to Japan. Rate-sensitive sectors such as utilities and real estate showed only modest moves in early trading, but the broader rise in yields is consistent with the cautious tone across sleeves.

  • 03

    EM semiconductor markets retreat sharply

    South Korea and Taiwan, the two largest emerging market exposures tracked within XEC.TO, fell 5.44% and 2.80% respectively in early trading, together accounting for nearly all of the sleeve's 1.90% decline. Despite the sleeve's relatively small weight in XEQT, moves of this magnitude in semiconductor-heavy markets are worth watching as a signal of shifting risk appetite in technology-adjacent equities globally.

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Event Window

Key events from the last 20 days

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Jul 21 to Aug 18 · $44.98 → $45.84

+1.91%