E224 – ETF Industry Flows

BMO ETFs: Views from the Desk

Equities continue to dominate Canadian ETF flows. Hear about this trend and more in today’s episode, as Erika Toth, David Cheng, and your host, Mckenzie Box, dive into the themes shaping markets this spring, including redemptions of HISA ETFs, rate cut expectations, the bounce back of balanced portfolios, and a retirement wave. McKenzie Box is Vice President of Product Management and Strategy at BMO Global Asset Management (BMO GAM). She is joined on the podcast by Erika Toth, a Director of Institutional and Advisory for Eastern Canada at BMO GAM, and David Cheng, an ETF and Quantitative Analyst at BMO Capital Markets. The episode was recorded live on Wednesday, May 8, 2024. Report: ETFs – Industry and Flows Update (April 2024) ETFs mentioned in the podcast: BMO Ultra Short-Term Bond ETF (Ticker: ZST) BMO Equal Weight Utilities Index ETF (Ticker: ZUT) BMO Covered Call Utilities ETF (Ticker: ZWU) BMO Canadian Dividend ETF (Ticker: ZDV) BMO Low Volatility Canadian Equity ETF (Ticker: ZLB) ZST, total returns as at 2024/04/30: 1yr: 5.45%, 3yr: 2.78%, 5yr: 2.32%, 10yr: 1.93%, SI: 1.99% Duration: A measure of the sensitivity of the price of a fixed income investment to a change in interest rates. Duration is expressed as number of years. The price of a bond with a longer duration would be expected to rise (fall) more than the price of a bond with lower duration when interest rates fall (rise). Alpha: A statistical measure of the value a fund manager adds to the performance of the fund managed. If alpha is positive, the manager has added value to the portfolio. If the alpha is negative, the manager has underperformed the market. Beta: A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Disclaimers: The viewpoints expressed by the Portfolio Manager represent their assessment of the markets at the time of publication. Those views are subject to change without notice at any time. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent prospectus. For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination. BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal. This podcast is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. ®/™Registered trademarks/trademark of Bank of Montreal, used under licence. View Legal Disclosures