E161 – Investors Believe Fed Likely Close to Finished Hiking Rates

BMO ETFs: Views from the Desk

The Fed delivered on an expected rate hike at its latest meeting this week, but in the central bank’s accompanying commentary was far less transparent on where rates go from here. In today’s episode, portfolio managers Chris McHaney, Alfred Lee, and your host, Mark Raes discuss the market reaction to the Fed’s decision, and why investors are perhaps unconvinced that rates will rise much further. They also dive into where food and energy prices could head this year, and suggest ways investors can hedge against these more volatile categories within the consumer price index. Read the episode summary.

Mark Raes is Managing Director and Head of Product at BMO Global Asset Management. He is joined on the podcast by Alfred Lee and Chris McHaney, Portfolio Managers and ETF Specialists at BMO Global Asset Management. The episode was recorded live on February, 2023.

ETFs mentioned in the podcast:

• BMO Long Federal Bond Index ETF (Ticker: ZFL)
• BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (Ticker: ZMU)
• BMO Corporate Bond Index ETF (Ticker: ZCB)
• BMO Short Corporate Bond Index ETF (Ticker: ZCS)
• BMO Global Infrastructure Index ETF (Ticker: ZGI)
• BMO MSCI USA Value Index ETF (Ticker: ZVU)
• BMO MSCI USA High Quality Index ETF (Ticker: ZUQ)
• BMO Global Agriculture ETF (Ticker: ZEAT)
• BMO Covered Call Energy ETF (Ticker: ZWEN)
• BMO ARK Innovation Fund ETF Series (Ticker: ARKK)

Disclosure:

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 or prospectus 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.

The BMO ETFs or securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. (“MSCI”), and MSCI bears no liability with respect to any such BMO ETFs or securities or any index on which such BMO ETFs or securities are based. The prospectus of the BMO ETFs contains a more detailed description of the limited relationship MSCI has with BMO Asset Management Inc. and any related BMO ETFs.

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.

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