TSX ETF Investor Centre
10 ETF Innovations Impacting Portfolios Today
The ETF industry has seen significant innovation helping investors build better portfolios. Read Kevin Prins' blog post to find out more!
Investing In Artificial Intelligence (A.I.)
AI breakthroughs have the potential to massively improve profitability for companies but how do they impact your portfolio?
Money Market And Short-Term Fixed Income
A “great migration to cash” has been triggered by the flurry of inflows into fixed income and cash alternatives. After years of being a forgotten segment of the market, how and why are they the leading asset gatherer?
Low Volatility Investing – Benefitting From Alternative Weighting
Many investors look to equities for the growth component of portfolios, but low volatility investing achieves similar benefits while mitigating inherent risk.
BMO ETF Portfolio Strategy Report (Q3 2023)
In this report: data steers the ship, things to keep an eye on, stats and portfolio holdings, and portfolio characteristics. All prices, returns and portfolio weights are as of market close on June 30, 2023, unless otherwise indicated.
Covered Call Strategy Vs. Traditional Income Investments
There are many ways to earn income from investments, but a covered call strategy creates a dual stream of income which can benefit many investors.
4 Reasons to Own U.S. Preferred Shares Now
U.S. preferred shares sold off in Q1 2023 amid investor nervousness about deposit liquidity concerns at several U.S. regional banks (Silicon Valley Bank, Signature Bank, First Republic Bank) and Credit Suisse, a major Swiss bank. While well-capitalized by regulatory standards, these banks were unable to meet liquidity demands related to a classic run-on-the-bank, and regulators brokered a forced sale of these institutions to stronger banks.
For U.S. bank depositors, unrealized losses in investment and loan portfolios was the primary concern that led to deposit flight. These unrealized losses were almost entirely due to higher interest rates reducing the prices of U.S. Treasuries and related securities that make up the bulk of banks’ investment portfolios. The more severe asset-liability mismatches have been bank-specific and, in our view, do not represent a threat to the overall 5,000-member global banking system.
Q2 2023 earnings, reported in July, showed that earnings were in line with analyst expectations. Capital ratios remained strong and regional banks especially have generally been successful in attracting or retaining deposits. Non-interest-bearing deposits are down, in most cases replaced by more expensive interest bearing deposits, a more costly source of bank funding. Investors were generally reassured by Q2 results and U.S. bank stocks staged a minor rally after earnings season.
Using ETFs For International Investing
As an investor, diversification is crucial to reducing risk and achieving long-term growth. International investing is a great way to diversify your portfolio, but it can be challenging for Canadians to navigate the complex world of foreign stocks and currencies. One solution is to use exchange-traded funds (ETFs) for international investing.
ETF Fees: What You Need To Know Before Investing
Investing in Exchange-Traded Funds (ETFs) can be a smart move for many investors, but it’s crucial to have a clear understanding of the costs and fees associated with these investment vehicles. In this blog post, we will decode the various expenses and provide valuable insights to help you make informed decisions.
Fixed Income - Advanced Portfolio Construction Techniques
In this video, Matt Montemurro, Director & Fixed Income Portfolio Manager with BMO ETFs, dives into Fixed Income ETFs, covering how they have evolved and how they can be used in portfolio construction. We will discuss some ways to manage interest rate and inflation risks in your fixed income portfolio and a look at the current market environment. We also discuss the key indicators to watch when it comes to positioning in fixed income.
Learn more about BMO ETFs: bmogam.com/ca-en/advisors/investment-solutions/etf-centre/.
Read the ETF Market Insights blog: etfmarketinsights.com/blog.
Visit our website: etfmarketinsights.com
Navigating the Markets with Larry Berman
BMO ETFs are joined by special guest Larry Berman, host of BNN’s Berman’s Call and CIO of ETF Capital Management. They will discuss the current market outlook, and how Larry is positioning his portfolios given the risks impacting today’s markets.
ETF Market Insights is a weekly 30-minute series created by BMO ETFs.
Learn more about BMO ETFs: bmogam.com/ca-en/advisors/investment-solutions/etf-centre/.
Read the ETF Market Insights blog: etfmarketinsights.com/blog.
Visit our website: etfmarketinsights.com
Decoding Q2 Canadian Bank Earnings
Decoding Q2 Canadian Bank Earnings
Learn more about BMO ETFs: bmogam.com/ca-en/advisors/investment-solutions/etf-centre/.
Read the ETF Market Insights blog: etfmarketinsights.com/blog.
Visit our website: etfmarketinsights.com
Mastering Your Finances To Build Wealth
In this video, BMO ETFs discusses financial wellness, and the habits that will help you successfully build wealth. Fred Masters, Author of Lessons on Mastering Money and Kornel Szrejber, Host of the Build Wealth Canada Podcast share insights and personal experiences in an engaging discussion that highlights the importance of financial literacy and tools you can leverage in your own investment journey.
SPIVA | S&P Dow Jones Indices (spglobal.com)
ETF Market Insights is a weekly 30-minute series created by BMO ETFs.
Learn more about BMO ETFs: bmogam.com/ca-en/advisors/investment-solutions/etf-centre/.
Read the ETF Market Insights blog: etfmarketinsights.com/blog.
Visit our website: etfmarketinsights.com
Low Volatility ETFs
Are you tired of the market ups and downs? Are you looking for a smoother, more stable approach to investing in the stock market? Discover the world of low volatility ETFs and explore the benefits for investors. BMO ETFs’ experts will provide you with the tools and knowledge you need to make informed investment decisions and the key considerations for low volatility ETF investing.
ETF Market Insights is a weekly 30-minute series created by BMO ETFs.
Learn more about BMO ETFs: bmogam.com/ca-en/advisors/investment-solutions/etf-centre/.
Read the ETF Market Insights blog: etfmarketinsights.com/blog.
Visit our website: etfmarketinsights.com
Spring Into ETFs Investing 2023 — Part 3 & 4
It seems we’ve waved goodbye to the days of low volatility with market volatility remaining at elevated levels since the pandemic. Find out how you can manage this volatility using ETFs in your portfolio and smoothen the ride. We will look at how Factors perform in different markets, and other strategies to implement in order to lower the impact of market swings on your portfolio.
Investors often turn to cash during challenging market environments but there are important considerations and risks investors should take when considering a move to cash. Learn about the different places you can park your cash and the current outlook for the fixed income environment.
Spring Into ETFs Investing 2023 — Part 1 & 2
The Core-Satellite approach to investing has the potential to enhance risk-adjusted returns in your portfolio by incorporating asset classes that are less correlated with the broad markets offering better diversification. Find out how you can harness opportunities in niche markets to strengthen your portfolio with this best of both-worlds strategy using ETFs.
Index based investing, or passive investing, has grown rapidly as investors recognize the benefits of a low-cost option to gain investment exposure to a wide variety of market benchmarks. Find out how active versus passive investing styles have performed overtime as we review SPIVAs latest findings. Discover how index ETFs are not all created equal, and important considerations for investors when looking to adopt this approach.
Choosing the Right Covered Call Strategy
Covered call funds have become popular in recent years as investors look for higher yielding investment strategies to add to their portfolios. A covered call option strategy involves investing in a portfolio of stocks and then selling call options on the same stocks that are held in the portfolio. This strategy allows a fund to generate additional income from the premiums received when selling call options, which reduces the volatility of the portfolio and allows the fund to pay out higher distributions than it would otherwise be able to do.
Canadian Lifecos – Well-Positioned for Higher Rates
Canadian life insurance companies (“lifecos”) have significant exposure to various macroeconomic factors including interest rates, equity markets and corporate credit. Interest rates typically have the biggest impact on the sector as lifeco reserves and earnings have historically had a high degree of economic sensitivity to changes in interest rates. This is the result of a duration mismatch between a lifeco’s insurance liabilities and its invested assets. Most life insurance products result in a long duration liability for the insurer that writes the policy. This occurs since buyers of life insurance policies are often in their early 40s and are therefore expected to live for several decades. A lifeco’s invested assets, on the other hand, typically have a shorter duration profile. This mismatch means that lifecos are generally helped by rising interest rates and hurt by declining interest rates.
Safety in Tech?
The tech sector (S&P 500 Info Tech Index) has outperformed the broader market and all other sectors year-to-date, with a 21.5% total return vs 7.0% for the S&P 500 Index, despite macro headwinds and volatility in the bond market due to recent bank failures. Many investors are wondering whether the tech sector, particularly mega cap tech, is the new safety trade.
Canadian Banks – Stability in Good Times, Bad Times
The global banking industry has once again been thrown into turmoil with the recent regional bank failures of Silicon Valley Bank, Silvergate Capital, and Signature Bank in the U.S., as well as the takeover of Credit Suisse by UBS Group at the behest of regulators in Switzerland. While there were specific issues impacting each of these entities, these recent failures have highlighted the risks associated with the rapid increase in overnight interest rates over the past year as central banks around the world have moved swiftly to tighten policy in response to high inflation. These risks include declining asset values (i.e. bond investments) as a result of higher rates across the yield curve, particularly for banks that run a duration mismatch on their balance sheets, as well as the potential for banks to quickly lose deposits as depositors search for higher yields in investment products and/or flee in the face of a real or perceived banking crisis.