ETFs Show their Value Amid Turbulent Markets

  • Flows reached $35 billion for the yr in Canada with BMO ETFs main the business with new flows of $8.4 billion for the twelfth consecutive yr1

  • Inflation and rising rates of interest dominated markets

TORONTO, Jan. 30, 2023 /CNW/ – BMO World Asset Administration (BMO GAM) immediately launched its yr finish Change Traded Funds Outlook Report (ETF Outlook Report) highlighting the continued success of exchange-traded funds (ETFs) in Canada. The report options consultants from throughout BMO GAM’s ETF crew sharing insights on the Canadian ETF market, and ETF tendencies in difficult markets.

In 2022, the Canadian ETF business reached $314 billion in belongings and $35 billion in internet new flows. The business noticed 153 new ETFs launched over the course of the yr. For the twelfth consecutive yr, BMO ETFs led the business with new flows of $8.4 billion.1

“ETFs have confirmed their value as soon as once more in 2022, each as efficient portfolio constructing blocks, and as environment friendly buying and selling instruments to assist traders make progress in direction of their monetary targets.” stated Mark Raes, Head of Product, BMO World Asset Administration. “Whereas we endured tough markets in 2022, ETFs helped traders reposition round inflation, greater rates of interest, and market uncertainty. ETFs that target areas of the market reminiscent of defensive elements, cashflow, and inflation protected bonds proved efficient, whereas specialised fairness ETFs are wanted for future development. Moreover, we’re happy that BMO ETFs proceed to steer the business in new flows for the twelfth consecutive yr.1“.

Key Themes

Inflation: Alfred Lee (Portfolio Supervisor)

  • Client worth index (CPI), whereas nonetheless effectively above long-term targets, is trending in the best course.

  • ETFs with publicity to sure sectors, reminiscent of inflation-protected bonds, vitality and infrastructure, can supply traders a hedge towards inflation.

Components: Chris Heakes (Portfolio Supervisor)

Sectors: Chris McHaney (Portfolio Supervisor)

Fairness Progress: Mark Raes (Head of Product)

  • The rise of inflation has closely impacted development shares as firms valued on future money flows now face a better low cost price and decrease development estimates.

  • Money on the sidelines may result in important alternatives for traders as soon as markets flip constructive.

  • U.S. Greenback power helped Canadian traders with unhedged forex publicity.

Listed Actual Belongings: Vishal Bhatia (Portfolio Supervisor)

  • ETFs based mostly on listed infrastructure equities mix the liquidity and effectivity of ETFs with publicity to infrastructure belongings.

  • World infrastructure ETFs offered differentiated returns on account of long-term contracts with built-in inflation pass-through mechanisms.

Mounted Revenue: Matt Montemurro (Portfolio Supervisor)

  • A really tough yr for mounted earnings for each rates of interest and credit score could also be seeing constructive alerts as mounted earnings markets have reset.

  • A barbell method to mounted earnings ETFs with brief time period credit score ETFs and long-term authorities ETFs has confirmed widespread with traders.

Balanced ETFs: Erin Allen (VP, On-line ETF Distribution)

  • The comfort of all-in-one, low-cost balanced ETF options appeals throughout investor sorts.

  • Canadian balanced ETFs noticed inflows of $1.8 billion for the yr.1

To view the total ETF Outlook Report, please click on here.

Additional details about BMO ETFs will be discovered at

1 NBF Analysis and Technique, Canadian ETF Flows, December 2022

The viewpoints expressed represents their evaluation of the markets on the time of publication. These views are topic to vary with out discover at any time with none type of discover. The data offered herein doesn’t represent a solicitation of a suggestion to purchase, or a suggestion to promote securities nor ought to the data be relied upon as funding recommendation.  Previous efficiency is not any assure of future outcomes.  This communication is meant for informational functions solely.

Any assertion that essentially relies on future occasions could also be a forward-looking assertion. Ahead-looking statements aren’t ensures of efficiency. They contain dangers, uncertainties and assumptions. Though such statements are based mostly on assumptions which might be believed to be cheap, there will be no assurance that precise outcomes won’t differ materially from expectations. Buyers are cautioned to not rely unduly on any forward-looking statements. In reference to any forward-looking statements, traders ought to fastidiously think about the areas of threat described in the newest prospectus.

Commissions, administration charges and bills all could also be related to investments in change traded funds. Please learn the ETF Info or prospectus of the BMO ETFs earlier than investing. Change traded funds aren’t assured, their values change regularly and previous efficiency might not be repeated.

For a abstract of the dangers of an funding within the BMO ETFs, please see the particular dangers set out within the BMO ETF’s prospectus.  BMO ETFs commerce like shares, fluctuate in market worth and will commerce at a reduction to their internet asset worth, which can enhance the chance of loss. Distributions aren’t assured and are topic to vary and/or elimination.

BMO ETFs are managed by BMO Asset Administration Inc., which is an funding fund supervisor and a portfolio supervisor, and a separate authorized entity from Financial institution of Montreal.

BMO World Asset Administration is a model title underneath which BMO Asset Administration Inc. and BMO Investments Inc. function.

®/™Registered logos/trademark of Financial institution of Montreal, used underneath license.

About BMO Change Traded Funds (ETFs)

BMO Change Traded Funds has been an ETF supplier in Canada for greater than 13 years, with over 100 methods, over 25 per cent market share in Canada1, and $79.2 billion in belongings underneath administration. BMO ETFs are designed to remain forward of market tendencies and supply compelling options to assist advisors and traders. This features a complete suite of ETFs developed in Canada for Canadians, reminiscent of value efficient core fairness ETFs following market main indexes, and a broad vary of mounted earnings ETFs; solution-based ETFs responding to consumer demand; and innovation with sensible beta ETFs, in addition to combining energetic and passive investing with ETF collection of energetic mutual funds.

1 Morningstar, December 2022

About BMO Monetary Group

Serving clients for 200 years and counting, BMO is a extremely diversified monetary providers supplier – the eighth largest financial institution, by belongings, in North America. With whole belongings of $1.14 trillion as of October 31, 2022, and a crew of numerous and extremely engaged staff, BMO supplies a broad vary of non-public and industrial banking, wealth administration and funding banking services and products to 12 million clients and conducts enterprise via three working teams: Private and Industrial Banking, BMO Wealth Administration and BMO Capital Markets.

SOURCE BMO Monetary Group



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