Market Sentiment: Overall investor optimism or pessimism towards Canadian small-cap stocks influences demand and price.

Underlying Holdings Performance: The collective performance of the small and mid-cap companies within the XSMC.TO ETF portfolio directly impacts its value.

Interest Rates: Rising interest rates can negatively impact small-cap companies, potentially decreasing the ETF's price.

Economic Growth: Strong economic growth typically benefits smaller companies, leading to increased ETF value, while recessions have the opposite effect.

Currency Fluctuations: Changes in the Canadian dollar's value affect the ETF's attractiveness to foreign investors and the reported earnings of companies with international operations.

Sector Performance: The performance of specific sectors heavily represented in the ETF (e.g., technology, resources) significantly impacts its overall price.

Fund Flows: Large inflows of investment increase demand and price, while significant outflows reduce demand and price.

Management Fees: Higher management expense ratios can slightly reduce the returns and consequently, the price of the ETF over time.