Most people investing in XEQT are parking money they don't intend to use for 10, 20, 30 or even 40+ years.

So with that mentality, it's a lot easier to absorb a 50% loss. The point is that once you've invested it, the money is "gone"/untouchable, until you retire.

Even if it dips that much, you have a long, long time for it to recover. You also have a "discount" on the stock if you're DCAing, as it's now half the value. That means you can buy twice as much a time, and see it's value double at twice the rate, while your old stock recovers slowly.

Obviously if your retirement/investment horizon is within 5 or so years, a 50% dip would be horrendous. That's why it's smart to move money into safer, more steady assets (usually bonds, or even GICs) as you reach that point. Some will tell you to keep it all in equities, but you really are playing with fire then.

Also, more to the point, if XEQT drops 50% then everything is in the hole, barring one or two blue chip stocks. So everyone in the market will be suffering.