- Flows reached
$17 billionduring the first semester of Canada1
- Inflation poses a major risk, technology is under pressure and few places to hide for bond investors
- BMO’s equally weighted banks ETF among top 10 by flow1
“Investors have struggled with the markets this year,” said
- With aggressive assumptions for further rate hikes already priced in, inflation leveling would be the catalyst for markets to rally.
- ETFs exposed to certain sectors, such as financial services and infrastructure, can offer investors a hedge against inflation.
Growth and innovation:
- Rising inflation has hit growth stocks hard as companies valued on future cash flows now face a higher discount rate and lower growth estimates.
- In the long run, these ETFs will continue to influence our behaviors and routines and have the potential to propel stock markets into the future.
Environment, Social and Governance (ESG):
- Despite uncertain markets, geopolitical events and the pandemic, ESG ETFs continue to attract investors, driven by institutional flows.
- BMO’s range of leading ESG ETFs targets neutral sector exposure, which under normal circumstances helps keep performance in line with the broader market.
- Canadian ETFs in the energy sector saw inflows of
$730 millionyear to date.1
- BMO’s Equal Weight Banks ETF was in the top 10 by flow.1
- Utilities have posted a positive year-to-date performance, with the defensive sector having ties to the energy complex and high levels of current cash flow.
Dividend and low volatility: Chris Heakes (portfolio manager)
- Shift from growth factors to defensive factors due to market volatility.
- Investors have used ETFs to add strategic portfolio positions to capitalize on this market rotation: dividend ETFs have seen
$1.3 billionnew net flows since the beginning of the year.1
- A difficult first half for fixed income where the combination of negative performance drag from interest rate sensitivity and widening credit spreads left investors with very little safe haven.
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About BMO Exchange Traded Funds (ETFs)
BMO Exchange Traded Funds has been a leading ETF provider in Canada for over 11 years, with over 100 strategies, over 25% market share in Canada.2, and $80.6 billion in assets under management. BMO ETFs are designed to stay ahead of market trends and provide compelling solutions to help advisors and investors. This includes a full range of ETFs developed in Canada for Canadians, such as profitable core equity ETFs tracking major market indices, and a wide range of fixed income ETFs; solution-based ETFs that meet customer demand; and innovation with smart beta ETFs, as well as combining active and passive investing with active mutual fund ETF series.
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in
Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or BMO ETFs prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
For a summary of the risks of investing in BMO ETFs, please see the specific risks set out in the BMO ETFs’ prospectus. BMO ETFs trade like stocks, their market value fluctuates and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and may be changed and/or eliminated.
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