Information Tech Capped Index ($TTTK) – SHOP.TO; KXS.TO & GIB.A

Summary

• TTTK is an index, not a stock: the S&P/TSX Capped Information Technology Index.
• For the week ending August 7, 2026, the index gained approximately 8.8%, based on its closely tracking XIT ETF.
• Shopify’s 28.7% earnings-driven surge accounted for most of the sector’s increase.
• Kinaxis gained 3.2% following strong Q2 recurring-revenue growth and higher guidance.
• CGI rose 1.7%, supported by earnings growth, but its modest organic revenue growth limited the increase.

TTTK Weekly Performance

The iShares XIT ETF, which tracks TTTK, moved from C$73.31 on July 31 to C$79.79 on August 7.

Measure	Performance
TTTK/XIT weekly change	Approximately +8.8%
TSX Composite weekly change	+3.3%
Relative outperformance	Approximately 5.5 percentage points

Technology substantially outperformed the broader Canadian market.

Why TTTK Increased

TTTK is highly concentrated. Its four largest companies represent more than 80% of the index.

Company	Approx. July 31 weight	Weekly return
Shopify	27.1%	+28.7%
Constellation Software	23.8%	Not the primary weekly catalyst
Celestica	22.8%	Secondary contributor
CGI	9.7%	+1.7%
Kinaxis	2.3%	+3.2%

Using the July 31 weights, Shopify alone contributed roughly: 27.1%×28.7%≈7.8 percentage points

Therefore, Shopify generated close to 90% of TTTK’s estimated 8.8% weekly gain. This also increased Shopify’s weight to approximately 30% by the end of the week.

Brief Company Comparison

Company	July 31 close	August 7 close	Weekly change	Main catalyst
Shopify	C$164.18	C$211.37	+28.7%	Major earnings beat and strong Q3 guidance
Kinaxis	C$168.00	C$173.43	+3.2%	SaaS and ARR growth; guidance raised
CGI	C$102.61	C$104.38	+1.7%	Strong EPS growth but modest revenue growth

Shopify: +28.7%

Shopify reported:

• Revenue of US$3.58 billion, up 34%;
• gross merchandise volume of US$115.57 billion, up 32%;
• adjusted EPS of US$0.42, above expectations;
• an 18% free-cash-flow margin; and
• Q3 revenue guidance in the low-30% growth range.

The guidance was well above the market’s prior expectation of approximately 27%. The results also reduced concerns that generative AI could weaken Shopify’s position. Management instead demonstrated that AI tools and partnerships are increasing merchant engagement.

Interpretation: strongest growth, but also the highest short-term valuation and volatility risk after a nearly 29% weekly increase.

Kinaxis: +3.2%

Kinaxis reported:

• Total revenue growth of 16%;
• SaaS revenue growth of 20%;
• annual recurring revenue growth of 19%, or 21% in constant currency;
• adjusted EBITDA growth of 23%; and
• a 130-basis-point improvement in adjusted EBITDA margin.

Management increased its full-year total-revenue and SaaS-growth guidance.

Interpretation: healthy recurring growth and improving margins, but its 2.3% index weight meant the gain had little influence on TTTK.

CGI: +1.7%

CGI’s latest results included:

• Revenue growth of 2.5%, or 1.3% in constant currency;
• net earnings growth of 13.8%; and
• diluted EPS growth of 22.5%.

CGI’s earnings benefited from margin control and a lower share count, while underlying organic revenue growth remained modest.

Interpretation: more stable and less expensive than high-growth software companies, but with a slower top-line growth profile.

Key Risks

• Concentration: Shopify, Constellation Software and Celestica represent approximately three-quarters of TTTK.
• Shopify reversal: A 10% decline in Shopify could reduce TTTK by approximately three percentage points at its current weight.
• Valuation: XIT reported a portfolio P/E of approximately 47 times, indicating considerable growth expectations.
• Earnings sensitivity: After the weekly increase, disappointing guidance from any major constituent could produce a sharp index correction.

Short-Term Scenarios

Scenario	Requirement	TTTK implication
Bull	Shopify holds its earnings gain and other major constituents strengthen	Continued upward momentum
Base	Shopify consolidates while CGI and Kinaxis remain stable	Sideways movement after the surge
Bear	Profit-taking in Shopify or weaker software valuations	Partial reversal of the weekly gain

The positive short-term thesis would be disproved by Shopify surrendering a substantial portion of its earnings-day gain on heavy volume.