- Flows reached $17 billion over
the first half of the year in Canada1
- Inflation poses a major risk, tech is under pressure, and
few places to hide for fixed income investors
- BMO's Equal Weight Banks ETF among the top 10 in terms of
TORONTO, July 26,
2022 /CNW/ - BMO Global Asset Management (BMO
GAM) today released its mid-year Exchange Traded Funds (ETF) report
highlighting the continued popularity and growth of ETFs in
Canada. The report features
experts from across BMO GAM's ETF team sharing insights on the
Canadian ETF market, and ETF trends in volatile markets.
"Investors have had a rough ride with markets this year," said
Mark Raes, Head of Product, BMO
Global Asset Management Canada. "ETFs continue to prove their worth
both strategically and tactically as access vehicles for satellite
positions and as core building blocks in portfolios. Even amid
heightened inflation, ETFs that focus on specific areas of the
market such as infrastructure can provide a good hedge and offer
protection for investors."
Inflation: Alfred Lee
- With aggressive assumptions for further rate hikes already
priced in, leveling inflation would be the catalyst to turn the
- ETFs with exposure to certain sectors, such as financials and
infrastructure can offer investors a hedge against inflation.
Growth and Innovation: Mark
Raes (Head of Product)
- The rise of inflation has hit growth stocks hard, as companies
valued on future cash flows now face a higher discount rate and
lower growth estimates.
- Long-term, these ETFs will continue to influence our behaviours
and routines and have the potential to power equity markets in the
Environmental, Social and Governance (ESG):
Erin Allen (VP, Online ETF
- Despite uncertain markets, geopolitical events, and the
pandemic, ESG ETFs continue to attract investors, led by
- BMO's suite of ESG Leaders ETFs targets a sector neutral
exposure, which helps, under normal circumstances, to keep
performance in line with the broad market.
Sectors: Chris McHaney
- Canadian energy sector ETFs saw inflows of $730 million year to date.1
- BMO's Equal Weight Banks ETF was in the top 10 in terms of
- Utilities showed positive performance year to date with the
defensive sector having ties to the energy complex, and high levels
of current cash flow.
Dividend and Low Volatility: Chris Heakes
- A shift from growth factors to defensive factors as a result of
the market volatility.
- Investors used ETFs to add strategic portfolio positions to
capitalize on this market rotation: dividend ETFs saw $1.3 billion in net new flows year to
Fixed Income: Matt
Montemurro (Portfolio Manager)
- A challenging first half for fixed income where the combination
of the negative drag on performance from interest rate sensitivity
and the widening of credit spreads has left investors very few
places to hide.
To view the full report, please click here.
For more information on BMO ETFs,
About BMO Exchange Traded Funds
BMO Exchange Traded Funds has been a leading ETF provider
in Canada for more than 11 years, with over 100
strategies, over 25 per cent market share
in Canada2, 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 comprehensive suite of ETFs developed
in Canada for Canadians, such as cost effective core
equity ETFs following market leading indexes, and a broad range of
fixed income ETFs; solution-based ETFs responding to client demand;
and innovation with smart beta ETFs, as well as combining active
and passive investing with ETF series of active mutual funds.
National Bank, ETF
Report, June 30, 2022
About BMO Financial
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider - the 8th largest bank, by
assets, in North America. With
total assets of $1.04 trillion as of
April 30, 2022, and a team of diverse
and highly engaged employees, BMO provides a broad range of
personal and commercial banking, wealth management and investment
banking products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Commissions, management fees and expenses all may be associated
with investments in exchange traded funds. Please read the ETF
Facts or prospectus of the BMO ETFs 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 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.
BMO Global Asset Management is a brand name that comprises BMO
Asset Management Inc. and BMO Investments Inc.
®/™Registered trademarks/trademark of Bank of Montreal, used under licence.
SOURCE BMO Financial Group