Markets are wobbling.
A mild pullback. Context matters more than the headline.
A mild pullback from the 52-week high. Not unusual, not alarming. If anything, this is a reminder to check that your contributions are set up automatically and your emergency fund is funded.
Lump Sum or DCA Into XEQT?
Small pullbacks are the best time to revisit this question.
Read the guide Stay PreparedWhat To Do When XEQT Drops
Build your plan before the real drawdown arrives.
Read the guide Large PositionsI Have $100,000 to Invest. Is XEQT Still Right?
Larger portfolios need a different approach in volatile markets.
Read the guideEvery drawdown has recovered. Every single one.
XEQT launched in 2019. In its short history it has experienced three significant drawdowns: the COVID crash of March 2020 (-33%), the 2022 rate-hike bear market (-18%), and several smaller corrections of 5-12%. Every single time, the fund recovered to a new high.
The investors who held through COVID and bought more — instead of selling — saw their portfolios reach new highs within 12 months. The investors who sold in March 2020 locked in a 33% loss and faced the emotionally difficult task of deciding when to reinvest into a rising market.
The evidence is not ambiguous. Time in the market has outperformed timing the market in every measured period across every major developed market. XEQT is designed specifically for this: hold everything, rebalance automatically, do not require any decisions from the investor.
| Drawdown event | Peak-to-trough | Recovery time |
|---|---|---|
| COVID crash (Feb-Mar 2020) | -33% | ~5 months |
| 2022 rate-hike bear market | -18% | ~14 months |
| Late 2023 correction | -11% | ~3 months |
| Early 2024 pullback | -8% | ~6 weeks |
| Current drawdown | 8.0% | Unknown |
Past drawdowns and recovery times are historical. They do not guarantee future recovery timelines. All investing involves risk. Not financial advice.
The market is on sale.
Are you a buyer or a seller?
Every Canadian investor who has held XEQT through a drawdown and kept contributing has been rewarded. Not because markets always go up in the short run — they do not — but because the long-run direction of global equity markets has been upward, and XEQT holds all of it.
Whatever markets do — stay invested.
Open a commission-free Wealthsimple account and buy XEQT. The 8,400 companies in XEQT have survived every recession, every crisis, and every panic since 2019. They will survive this one too.
Get up to a 3% match. Win a $3M home.
Open or fund a Wealthsimple account during the promotion period to qualify. See Wealthsimple's site for full terms and eligibility.
See the Current Offer on Wealthsimple →Promotion details are accurate as of the date displayed. Eligibility conditions, bonus amounts, hold periods, and expiry dates may change at any time. All current terms, conditions, and eligibility requirements are available on Wealthsimple's website at the time of account creation. This site contains an affiliate link. Not financial advice.