The iShares Core S&P 500 Index ETF (XUS:CA) has outperformed the S&P 500, making it a compelling option for Canadian investors despite currency headwinds. The fund's AUM has surged strongly to CAD8.6 billion since 2023, indicating growing investor interest and a bullish outlook for XUS:CA. XUS:CA's higher turnover rate and strategic rebalancing have contributed to its superior returns compared to similar ETFs like SPY and IVV.
The sudden nature of the stock market's reversal may have made the drawdown feel even worse, especially for retail investors.
Only a few months into 2025, the sharp decline of the U.S. stock market has prompted some of Wall Street's top forecasters to scale back their bullish predictions for the S&P 500.
The S&P 500 experienced its worst day since August on Monday, dropped into correction territory on Thursday, and posted its best day since the election on Friday. The volatile week led to a weekly loss of 2.3%, the index's fourth consecutive week in the red.
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The rally from the March 2020 “COVID” low is going through a 4 th wave correction, which may have ended this week, targeting $5115-5500 before the next rally to $7120-7740 kicks in.
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Year-ahead inflation expectations increased from 4.3% to 4.9%.
Could Wall Street's recent struggles open up a buying opportunity for investors?
U.S. stocks have fallen sharply in recent weeks as the Trump administration began imposing tariffs on foreign trading partners. Investors unnerved by the potential consequences of the burgeoning trade war have rotated away from domestic equities, particularly those in the consumer discretionary and technology sectors.
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