Global Economic Growth: Stronger global economies typically lead to increased demand for Canadian small-cap equities, pushing XSC.TO higher.

Canadian Economy: A healthy Canadian economy, especially business investment and consumer spending, supports small-cap growth, positively affecting XSC.TO.

Interest Rates: Lower interest rates generally boost economic activity and make borrowing cheaper for small businesses, benefiting XSC.TO, while higher rates can have the opposite effect.

Inflation: Moderate inflation is often seen as healthy, but high inflation can erode corporate profits and reduce consumer spending, potentially hurting XSC.TO.

Commodity Prices: As Canada is a commodity-driven economy, fluctuations in commodity prices, particularly oil and gas, can impact the performance of energy-related small-cap companies within XSC.TO.

Canadian Dollar: A weaker Canadian dollar can boost export-oriented small-cap companies within XSC.TO, while a stronger dollar can make exports more expensive and potentially dampen growth.

Small-Cap Sentiment: Investor sentiment toward small-cap stocks generally impacts XSC.TO. Positive sentiment can lead to increased investment, while negative sentiment can cause declines.

Sector Performance: The performance of key sectors represented in XSC.TO, such as financials, industrials, and consumer discretionary, directly influences the ETF's overall performance.

Company-Specific Factors: News and events related to individual companies held within XSC.TO, such as earnings reports or mergers, can influence the ETF's price.

Market Volatility: Higher market volatility generally leads to greater price swings in XSC.TO, as investors react to economic and political uncertainties.

Liquidity: High trading volume of XSC.TO can lead to efficient price discovery, while low liquidity can amplify price movements.

Fund Flows: Inflows into XSC.TO can increase demand and drive up the price, while outflows can lead to selling pressure and price declines.