Sector Performance: The underlying companies within the XLB.TO ETF are primarily materials companies. Their performance greatly affects the ETF's price. Strong earnings reports or positive guidance from these companies can push the ETF higher.

Commodity Prices: As a materials sector ETF, XLB.TO is highly sensitive to commodity prices like metals, chemicals, and paper. Rising prices of these commodities generally benefit the companies in the ETF and increase the ETF's price.

Economic Growth: Strong economic growth typically leads to increased demand for raw materials, benefiting materials companies and subsequently the XLB.TO ETF. Conversely, economic slowdowns can negatively impact demand and the ETF's price.

Interest Rates: Interest rate changes can affect the valuation of companies in the XLB.TO ETF. Higher interest rates can increase borrowing costs for these companies and potentially dampen investment, potentially lowering the ETF's price.

Inflation: Rising inflation may affect raw material costs, and in turn XLB.TO.

Currency Fluctuations: Currency exchange rates can affect the valuation of XLB.TO.