The answer should be easy to read and understand, be at an elementary level, and be complete. Underlying Holdings Performance: XSHU.TO tracks a specific index of Chinese stocks. When the companies in that index do well (earn more profits, grow their business), the ETF's price tends to go up. If those companies perform poorly, the ETF's price likely falls. Supply and Demand: Like any stock, the price of XSHU.TO is affected by how many people want to buy it versus how many people want to sell it. More buyers than sellers usually push the price higher. More sellers than buyers typically lower the price. Currency Exchange Rates: XSHU.TO invests in Chinese stocks, but it's traded in Canadian dollars. If the Chinese currency (Yuan) gets stronger compared to the Canadian dollar, the ETF's price will likely increase. If the Yuan weakens, the ETF's price will probably decrease. Investor Sentiment Towards China: General feelings about the Chinese economy and its stock market can impact XSHU.TO. If investors are optimistic about China, they may buy more, raising the ETF's price. Negative sentiment can lead to selling, lowering the price. Economic Conditions in China: The overall health of the Chinese economy plays a significant role. Factors like economic growth, inflation, interest rates, and unemployment in China can influence the performance of the companies XSHU.TO holds and, consequently, the ETF's price. Global Economic Conditions: Broader global economic trends can also impact XSHU.TO. For example, a global recession could negatively affect demand for Chinese goods and services, impacting the profits of Chinese companies and potentially lowering the ETF's price. Geopolitical Events: Events such as trade wars, political instability, or changes in regulations affecting Chinese companies can significantly influence investor sentiment and, therefore, the price of XSHU.TO. Interest Rates: Changes in interest rates, both in China and globally, can influence investment decisions. Higher interest rates might make bonds more attractive compared to stocks, potentially leading to some investors selling XSHU.TO, which causes the price to decrease. ETF Management Fees: While not a direct driver of daily price changes, the ETF's management expense ratio (MER) affects its overall return. Higher fees reduce the net return to investors. Price of Comparable ETFs: If there are similar ETFs that invest in Chinese equities, the price movement of these ETFs might affect the price of XSHU.TO.