E160 – Time to Look at Duration as BoC Signals Steadier Rate Path
Manage episode 353569299 series 2769149
The Bank of Canada has sent a pretty clear indication that rate hikes are on pause until further notice, opting to evaluate how the latest – and perhaps last – 25 basis-point increase in the current cycle will impact borrowers and the broader economy before the bank decides on a further tightening of monetary policy. In today’s episode, portfolio managers Chris Heakes, Matt Montemurro, and your host, McKenzie Box, discuss why the BoC’s guidance is a sign to look at long bonds again. They also dive into four new ETFs from BMO GAM, two covered-call equity ETFs, and two new U.S. fixed-income funds that will benefit investors looking to add duration back into their portfolios. Read the episode summary.
McKenzie Box is the Head of Product at BMO Global Asset Management. She is joined on the podcast by Matt Montemurro and Chris Heakes, Portfolio Managers and ETF Specialists at BMO Global Asset Management. The episode was recorded live on January 25, 2023.
ETFs mentioned in the podcast:
- BMO Covered Call Canadian Banks ETF (Ticker: ZWB)
- BMO Covered Call Energy ETF (Ticker: ZWEN)
- BMO Covered Call Health Care ETF (Ticker: ZWHC)
- BMO US Aggregate Bond Index ETF (Ticker: ZUAG)
- BMO TIPS Index ETF (Ticker: TIPS)
- BMO Equal Weight REITs Index ETF (Ticker: ZRE)
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 without any kind of notice. 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.
Commissions, management fees and expenses (if applicable) all may be associated with investments in BMO ETFs and ETF Series of the BMO Mutual Funds. Please read the ETF facts orprospectus of the relevant BMO ETF or ETF Series before investing. BMO ETFs and ETF Series 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 or ETF Series of the BMO Mutual Funds, please see the specific risks set out in the prospectus. BMO ETFs and ETF Series 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. ETF Series of the BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.
BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate.
®/™Registered trademarks/trademark of Bank of Montreal, used under licence.