Can I Lose All My Money with XEQT?
No. Losing 100% of your money in XEQT is virtually impossible. For that to happen, every publicly traded company across Canada, the US, Europe, Asia, and emerging markets would have to go to zero simultaneously. That’s 12,000+ companies across 40+ countries ceasing to exist at once.
That hasn’t happened in modern history. Not during the Great Depression. Not during World War II. Not during the 2008 financial crisis. Not during COVID.
What CAN happen (and has happened)
XEQT is 100% equities, so temporary declines are normal and expected:
| Event | Approximate decline | Recovery time |
|---|---|---|
| COVID-19 crash (2020) | ~30% | ~5 months |
| 2022 bear market | ~15% | ~2 years |
| 2008 financial crisis* | ~45% | ~5 years |
*XEQT didn’t exist in 2008, but its underlying holdings did. This represents what a similar global equity portfolio experienced.
These drops are temporary. Every single one recovered—and went on to reach new highs.
Why XEQT is structurally safer than most investments
1. Massive diversification
XEQT holds 12,000+ stocks across:
- ~45% US companies
- ~25% Canadian companies
- ~20% international developed markets
- ~10% emerging markets
For XEQT to go to zero, the entire global economy would have to collapse permanently. At that point, your bank account wouldn’t be safe either.
2. Automatic rebalancing
XEQT rebalances its underlying holdings automatically. If one region drops, the fund adjusts. You don’t have to do anything.
3. Backed by BlackRock (iShares)
XEQT is managed by BlackRock, the world’s largest asset manager with over $10 trillion in assets. The fund structure is heavily regulated by Canadian and international securities laws.
What you SHOULD actually worry about
The real risks with XEQT aren’t about losing everything. They’re about:
- Selling during a dip — Panic selling locks in temporary losses. If you’d held through COVID’s 30% drop, you’d have been positive within months.
- Needing the money too soon — XEQT is for 5+ year timelines. If you need money in 1-2 years, use a savings account or GICs instead.
- Not investing at all — Inflation erodes cash. Sitting on the sidelines is guaranteed to lose purchasing power.
How to manage the real risks
- Only invest money you won’t need for 5+ years — Short-term money belongs in CASH.TO or GICs
- Automate your contributions — Removes the temptation to stop buying during scary times
- Don’t check your portfolio daily — Quarterly or annually is plenty
- Remember the history — Every crash in the last century has been followed by recovery and new highs
The bottom line
You can’t lose all your money with XEQT. You can lose some temporarily during market downturns—that’s normal and expected. The investors who lose money are the ones who panic sell at the bottom. The ones who hold (or keep buying) come out ahead.
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