The XEQT Market Chronicle

XEQT is trading at $45.48, up 1.79% from the prior week's close and sitting just 0.5% below its fresh 52-week high of $45.69, set on Friday. Monday's +1.34% jump provided the week's momentum, but a midweek fade to $45.00 and a slow grind back upward gave the candles a shape that tells two very different stories in five days.

The stories arrived in sequence. On Sunday, the United States and Iran announced a peace agreement, and equity markets opened with a broad relief rally: the S&P 500 surged 1.7% on Monday and the Nasdaq popped 3.1%. By Wednesday, new Fed Chair Kevin Warsh held rates at 3.50-3.75% but delivered a hawkish surprise: the dot plot median rose to 3.8%, implying a rate hike, and the statement stripped out its prior easing bias. Nine of eighteen officials now project higher rates this year. Markets gave back Monday's gains almost entirely.

For XEQT holders, the week is a textbook​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​​‌‌​‌‌‌‌​​‌‍‌‌​‌​​‌‌‌​​‌‌​​​‌‌​‌​​​‌‌‌‌​​‌‌ demonstration of why geopolitical headlines and central bank theatre cancel each other out over time. The fund absorbed a Middle East ceasefire, a regime change at the Fed, and a suspended Iran negotiation, yet finished barely two percent higher. Diversification did precisely what it was designed to do: nothing dramatic.

The instructive number is $45.00, Wednesday's intraday low, which arrived minutes after the most hawkish Fed statement in years. By Friday, XEQT had already recovered past it. That is the half-life of a headline.

XEQT is trading at $44.68, up 1.82% from where it opened the week, though it took a scenic route to get there. Monday and Tuesday saw quiet erosion; Wednesday plunged to a low of $43.29 as Iran tensions and rate repricing weighed on sentiment. Then Thursday delivered the week's defining move: a +2.26% single-day snap-back that carried into Friday's close near the session high.

The macro backdrop was unusually dense. Early in the week, U.S. strikes on Iran and the continued closure of the Strait of Hormuz sent energy prices higher and risk assets lower. Markets then had to digest the Bank of Canada rate decision on Wednesday, where expectations had shifted toward a hold at 2.25% amid sticky inflation. But the headline that swallowed everything else came Thursday and Friday: SpaceX priced its IPO at $135 per share, raising approximately $75 billion at a $1.75 trillion valuation, and began trading Friday on the Nasdaq under the ticker SPCX.

For XEQT holders, the week is instructive in its compression. Geopolitical fear, central bank uncertainty, and generational corporate events all landed inside five trading sessions, yet the fund sits just 0.8% below its 52-week high of $45.06. Diversification did its quiet work: energy names cushioned what tech gave back midweek, and the rebound rewarded those who simply stayed seated.

The data point worth holding: XEQT touched $43.29 on Wednesday morning and traded at $44.78 by Friday. That 3.4% swing happened in roughly 48 hours. The cost of being out of the market, even briefly, is rarely zero.

XEQT drifted quietly higher through Thursday, touching $45.06 on Jun 4 (a fresh week high and within pennies of its 52-week peak). Then Friday happened. A single session drop of -2.62% dragged the fund to $43.88, where it is trading as of Friday's close. The drawdown from the 52-week high now sits at -2.5%.

The catalyst was unmistakable. U.S. nonfarm payrolls surged 172,000 in May, more than double the 80,000 consensus, while prior months were revised up a combined 93,000. North of the border, Canadian employment jumped 88,000, the largest gain since December 2024. Bond yields spiked, gold tumbled to its lowest level of 2026, and the S&P/TSX Composite fell 2.28% as rate-cut hopes evaporated ahead of the Fed's Jun 16 meeting.

For the long-term XEQT holder, this​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​​‌‌​‌‌‌‌​​‌‍‌‌​‌​​‌‌‌​​‌‌​​​‌‌​‌​​​‌‌‌‌​​‌‌ is a familiar pattern: good economic news punished by a market repricing interest rate expectations. The underlying economy is not breaking. The labour market, if anything, is firmer than most forecasters believed. The cost of that strength is simply a higher-for-longer rate path.

The week's most instructive number: 93,000. That is how many more jobs the U.S. created in March and April than originally reported. Markets do not just move on new data; they move when old data turns out to have been wrong.

XEQT is trading at $44.49, up 1.16% from the prior week's close. Monday's session delivered the week's strongest move (+1.77%) as the TSX rallied while U.S. markets sat out Memorial Day, but gains faded through midweek before stabilising near Friday's close. The fund sits just 1.1% below its 52-week high of $45.00, touched briefly on Monday.

The macro backdrop this week was a study​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​​‌‌​‌‌‌‌​​‌‍‌‌​‌​​‌‌‌​​‌‌​​​‌‌​‌​​​‌‌‌‌​​‌‌ in contradictions. Canada's economy officially slipped into a technical recession after a second consecutive quarterly contraction, weighed down by tariff-hit exports and frozen business investment. Yet equity markets barely flinched: the TSX Composite rose to record territory on expectations of a dovish Bank of Canada, while the S&P 500 and Nasdaq printed fresh all-time highs. A U.S.-Iran ceasefire extension eased oil prices, Nvidia's $81.6 billion quarterly revenue reinforced the AI spending cycle, and bond yields pulled back as inflation concerns cooled.

For the long-term XEQT holder, this​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​​‌‌​‌‌‌‌​​‌‍‌‌​‌​​‌‌‌​​‌‌​​​‌‌​‌​​​‌‌‌‌​​‌‌ week is a textbook lesson in why diversification absorbs what headlines cannot. A Canadian recession strengthens the case for rate relief from the BoC, which lifts bond prices inside the fund. Meanwhile, U.S. and global equities, comprising the bulk of XEQT's allocation, marched to new highs. The parts work when they are not asked to agree.

The single most instructive number: the S&P 500 closed May with a 5.1% monthly gain, yet Canada's GDP contracted for two straight quarters. Owning the whole world means never needing both hemispheres to shine at once.

XEQT is trading at $43.98, up 1.83% from last week's close of $43.19. The week opened softly on Tuesday (TSX was closed Monday for Victoria Day), dipping to a low of $42.91, before a +1.3% surge on Wednesday carried the fund to fresh 52-week-high territory at $44.14 by Friday.

The macro backdrop was a tug of war between inflation anxiety and geopolitical hope. Tuesday saw selling pressure as U.S. Treasury yields hit their highest level in a year and bond markets signalled persistent inflation concerns. Wednesday's reversal was powered by two catalysts: Nvidia reported record quarterly revenue of $81.6 billion, beating estimates by nearly four per cent, and reports surfaced that a U.S.-Iran draft resolution could be imminent, briefly pulling oil below $100 a barrel.

For the long-term XEQT holder, the week is a textbook reminder that holding through headline noise is the strategy. The fund sits just 0.4% below its all-time high, having recovered fully from the Iran-war drawdown that began in late February. Canadian bank earnings arrive next week, adding another layer of domestic catalyst for the TSX-heavy slice of the portfolio.

The week's most instructive number: S&P 500 companies have now reported Q1 earnings growth of nearly 28% year over year, with 84% beating estimates. The fundamentals beneath the price remain sound, even when the headlines are not.

XEQT is trading at $43.19, down 0.44% from Monday's open of $43.38. The week traced a familiar arc: a quiet start, a midweek push to a fresh 52-week high of $43.85 on Thursday as optimism around the Beijing summit crested, then a sharp 1.3% drop on Friday that erased the week's gains. The intraday range of $43.03 to $43.85 tells the whole story in 82 cents.

The macro backdrop was dominated by the Trump-Xi summit in Beijing on May 14 and 15. Markets rallied Thursday on early headlines of a "constructive" framework for U.S.-China relations and Nvidia reportedly receiving approval to sell H200 chips to Chinese firms. But Friday brought sobriety: the summit produced no major trade deals beyond a 200-unit Boeing order (far below the 500 anticipated), and a global bond selloff sent the S&P 500 down 1.24%. The TSX Composite fell 1.3% to 33,833 as surging yields hammered miners and financials.

For long-term XEQT holders, the drawdown from the 52-week high sits at just 1.5%. That is barely a rounding error in the context of a fund that touched $34.31 a year ago. The bond selloff and inflation concerns from the Iran conflict will test patience, but the underlying earnings season remains robust, with 84% of S&P 500 companies beating estimates.

The week's most instructive number: $43.85, a fresh 52-week high set on Thursday. New highs are not obstacles. They are what a diversified global equity portfolio is designed to produce, one compounding year at a time.

XEQT is trading at $43.38, up +2.31% for the week so far and sitting just 0.1% below its 52-week high of $43.43, set on Friday. The week opened with a stumble: Monday dipped to a low of $42.08 as Middle East tensions flared, but Wednesday's +1.79% single-day surge erased the deficit and then some.

The macro backdrop was a tug-of-war between fear and fundamentals. On Monday, UAE missile interceptions rattled markets and sent oil above US$106 per barrel. By midweek, ceasefire signals calmed crude and the S&P 500 embarked on what became a sixth consecutive winning week, gaining 2.3%. Friday's U.S. jobs report sealed the mood: 115,000 nonfarm payrolls crushed a consensus expecting just 55,000, while Canadian employment data unexpectedly declined, reinforcing expectations the Bank of Canada will hold rates.

For XEQT holders, the week is a textbook​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​​‌‌​‌‌‌‌​​‌‍‌‌​‌​​‌‌‌​​‌‌​​​‌‌​‌​​​‌‌‌‌​​‌‌ reminder that diversification absorbs shocks the headlines amplify. Canadian banks rallied on rate-hold expectations, U.S. tech surged on AI-driven earnings beats (AMD alone topped revenue estimates by over US$300 million), and energy exposure provided a natural hedge against the very geopolitical risk that spooked Monday's open.

The week's sharpest lesson sits in the distance between sentiment and outcome. Consumer sentiment fell to a record low of 48.2, yet the S&P 500 printed fresh all-time highs. Markets do not wait for consumers to feel better before they move higher.

XEQT is trading at $42.40, up a modest +0.17% on the week, sitting just 1% below its 52-week high of $42.84. The first half of the week drifted lower (Wednesday touched a low of $41.76), before a sharp +1.22% rally on Thursday erased three days of softness in a single session.

The week's defining event landed on Wednesday, when the Bank of Canada held its overnight rate at 2.25%, citing higher energy-driven inflation alongside a soft labour market and ongoing tariff drag. Governor Macklem warned that if oil prices remain elevated, "there may be a need for consecutive increases in the policy rate," while also acknowledging that new U.S. trade restrictions could force cuts. South of the border, the S&P 500 surged to a new all-time high of 7,272 on Friday, posting its best monthly gain since November 2020, fuelled by blowout earnings from Alphabet, Apple, and Amazon.

For the long-term XEQT holder, the picture is quietly encouraging. The fund's global diversification means it captures both the U.S. tech rally and the defensive tilt in Canadian equities, where analysts are rotating targets toward utilities and infrastructure names. A 1% drawdown from the 52-week high is not a buying signal or a warning: it is equilibrium.

The week's most instructive number: $41.76 to $42.57. That 1.9% intraweek range contained a rate decision, a geopolitical oil premium, and the biggest U.S. earnings week of the quarter. For a passive investor, the lesson is that volatility is the entrance fee, not the enemy.

XEQT is trading at $42.33, down 0.96% from last week's close. The sharpest move came Tuesday, when a 1.18% drop marked the week's low point at $41.84, though the fund has since steadied. With a drawdown of just 1.2% from its 52-week high of $42.84, the broader trend remains intact.

The macro backdrop is a tangle of crosscurrents. The U.S.-Iran standoff over the Strait of Hormuz kept Brent elevated, and Canadian producer prices spiked 2.4% month-over-month in March on surging energy and petroleum costs, raising the spectre of rate hikes rather than cuts. On Wednesday, the S&P 500 and Nasdaq hit fresh record closes after Trump extended the Iran ceasefire. Then Intel delivered a historic 24% single-day surge on Friday, its best since 1987, as Q1 earnings crushed expectations and the AI-driven CPU narrative broadened the semiconductor rally.

For the patient XEQT holder, the tension between geopolitics and earnings strength is precisely what diversification is designed to absorb. Canadian unemployment sits at 6.7%, the domestic economy is soft, and trade uncertainty lingers. But the S&P 500 is reporting its sixth consecutive quarter of double-digit earnings growth, with 84% of reporting companies beating estimates. The fund holds all of it: the weakness and the resilience together.

The week's most telling number is $42.33 itself. Despite a Middle Eastern conflict, oil above $89, and a soft Canadian labour market, XEQT sits barely one percent from an all-time high. That is what owning the whole market looks like over time.

XEQT is trading at $42.74, up +2.47% for the week so far and sitting just 0.2% below its 52-week high of $42.84, which it touched on Friday. The week began with a quiet Monday grind from $41.51, built steadily through midweek, then accelerated on Friday's +1.18% session as risk appetite surged globally.

The catalyst was unmistakable. On Friday, Iran's foreign minister declared the Strait of Hormuz open to commercial shipping under a Lebanon ceasefire, and crude oil plunged over 11% in a single session. The S&P 500 and Nasdaq both closed at all-time record highs, with U.S. equities returning roughly 4.55% for the week on a combination of easing geopolitical risk, a softer-than-expected PPI print, and strong early bank and tech earnings. Canadian equities followed, returning 1.93% as sentiment steadied.

For the long-term XEQT holder, this week is a case study in why selling into fear rarely works. The fund has now recovered from the Iran-driven drawdown that dominated March, climbing back from a 52-week low of $31.16 to whisper distance of a new all-time high. Diversification across four underlying index funds did what it was designed to do: absorb the shock, then participate in the recovery.

The single most instructive number this week: eleven trading days. That is how long it took the Nasdaq to swing from oversold to overbought, the fastest reversal in over four decades of data. Markets do not send calendar invitations before they turn.

XEQT is trading at $41.71, up +3.11% so far this week and sitting just 1.5% below its 52-week high of $42.36. The week's defining candle came on Wednesday: a +2.37% gap higher as ceasefire headlines landed overnight, followed by three sessions of quiet consolidation between $41.26 and $41.78. Tuesday's intraday low of $40.17 now looks like a different era.

The catalyst was unmistakable. President Trump announced a two-week ceasefire with Iran late Tuesday evening, and global markets erupted: the S&P 500 leapt 2.5% on Wednesday, the Dow posted its best single day since April 2025, and U.S. crude oil plunged 16.4% to $94.41 per barrel after trading as high as $117 the day before. The TSX rose on ceasefire hopes too, though Canadian energy names gave back gains as oil retreated from war-driven highs. Beneath the relief, March CPI showed headline inflation at 3.3% year-over-year, a reminder that even peace carries a price tag.

For the long-term XEQT holder, the week​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​​‌‌​‌‌‌‌​​‌‍‌‌​‌​​‌‌‌​​‌‌​​​‌‌​‌​​​‌‌‌‌​​‌‌ is a textbook lesson in why staying invested matters more than staying informed. The biggest single-day move of the year so far arrived on a geopolitical headline that no one could have timed. XEQT's global diversification absorbed the oil shock through its Canadian energy tilt and captured the tech-led rebound through its U.S. allocation.

The single most instructive number: oil fell from $117 to $94 in one session, yet XEQT moved just $0.96. That is the quiet power of owning 9,000 stocks across 49 countries.

XEQT is trading at $40.45 as of Monday, up +3.82% from the prior week's close. The week opened softly, dipping to a low of $38.81 on Monday before a +2.8% surge on Tuesday carried the fund past $40 for the first time in days. Wednesday and Thursday held the gains, with the weekly high touching $40.60, leaving XEQT just 4.5% below its 52-week high of $42.36.

The catalyst was unmistakable: President Trump suggested the Iran war could end within two to three weeks, and markets responded with a broad relief rally. Oil briefly dropped below $99, and the S&P/TSX Composite recovered above 33,100 on Thursday after reports that Iran may allow some oil shipments from the Persian Gulf. But the optimism was fragile. Trump later signalled an escalation, bond yields climbed on stagflation fears, and the Bank of Canada's March deliberations (released Wednesday) revealed a central bank caught in a genuine dilemma: holding rates at 2.25% while inflation and weakness pull in opposite directions.

For the long-term XEQT holder, this week is a textbook study in noise. The fund holds over 9,000 stocks across 49 countries. No single geopolitical headline rewrites its trajectory. The S&P 500 finished Q1 down 4.6%, yet FactSet still forecasts 17% earnings growth for U.S. large caps this year. Fundamentals remain the floor beneath the volatility.

The week's most instructive number: $38.81 to $40.60. That is a 4.6% intraweek range driven entirely by headlines, not earnings. Markets closed Friday and Monday for the Easter long weekend. The price you pay matters less than the decades you hold.

XEQT is trading at $38.96 as of Friday, up 0.39% from last week's close but well off its midweek high of $40.12 reached Wednesday. The week traced an arc familiar to anyone watching geopolitical risk: a hopeful start (Monday gained 1.8%), a strong push higher through Wednesday, then a sharp reversal. Thursday's -1.82% drop was the biggest single-day decline of the week, and Friday extended the slide.

The cause sits in the Middle East. The S&P 500 posted its fifth consecutive weekly loss, its longest losing streak since 2022, falling roughly 2% as oil supply fears from the Iran war pushed crude near $97 and Treasury yields spiked. The Bank of Canada held its rate at 2.25% the prior week, acknowledging that rising energy prices will push inflation higher while the economy remains soft. Governor Macklem's dilemma is plain: rate hikes risk deepening weakness, rate cuts risk entrenching inflation.

For long-term XEQT holders, the current 8% drawdown from the 52-week high of $42.36 is uncomfortable but historically unremarkable. Canada's energy-heavy market showed relative strength through much of the week, with the TSX outperforming all three major U.S. indices on Friday. Diversification across geographies is doing its quiet work.

The week's most telling number: $40.12 to $38.87, a 3.1% intraweek range driven entirely by headlines, not fundamentals. This is what volatility looks like when geopolitics, not earnings, sets the price.