TSX ETF Investor Centre
Europe - The Worst May Be Behind Us
European equity markets have strongly outperformed the U.S. over the past three months in both U.S. dollar and local currency terms. The magnitude of the recent outperformance is unprecedented in the last 15 years, with the Euro STOXX 50 versus S&P 500 materially breaking above its 100-week moving average for the first time since the Great Financial Crisis, except for a brief period in first half of 2015 when the European Central Bank (ECB) launched Quantitative Easing in January. The 100-week moving average is a trend indicator, and the break above this trendline could be an indication that Europe’s structural underperformance has come to an end. We believe several factors have led to Europe’s recent outperformance and should continue to drive this trend.
2023 Outlook: Pause or Pivot and the Recession Obsession
We expect 2023 will be another challenging year, especially in the first half as the market continues to price in recession scenarios. While inflation has begun to decelerate, it remains elevated and there is still some uncertainty in the deceleration path. The rapid pace of monetary policy tightening has been a headwind for risk assets but the expected moderation in rate hikes should become less of an overhang as the effects of recent policy decisions begin to reflect in the economic data. As the year unfolds, the market’s ability to price in a mix of growth, inflation, and recession risk should become more clear and provide support for risk assets. As a result, we believe investors should remain defensive in this volatile inflationary market regime.
U.S. Preferred Shares – An Attractive Income Opportunity in Volatile Markets
Rapid rate increases in 2022 led to substantial price declines broadly across fixed-income asset classes including U.S. preferred shares. The Manager believes the current yield and price level of U.S. preferred shares offer an opportunity for investors to lock-in an attractive level of income with long term capital appreciation potential.
A Unique Multi-Asset Approach to Income & Growth
The U.S. Consumer Price Index increased 7.7% year-over-year in October, which was the smallest increase since the beginning of 2022. The equity market responded with a greater than 800 point surge in the Dow Jones Index on October 12, 2022. However, one month of lower-than-expected inflation data doesn’t signal an equity market reversal and the near-term interest rate decisions from the U.S. Fed still remain unclear. Given the current backdrop, prudent investors should consider a diversified investment portfolio that will thrive in both volatile market conditions and through periods of recovery.
A Potential Tax-Effective Alternative to GICs
On October 26, 2022, the Bank of Canada announced another 50 basis points increase to the overnight rate in an attempt to control inflation, increasing the target overnight rate to 3.75%. As a result of the sharp rate hikes this year, all major Canadian fixed income indices are down significantly, and fixed income investors may want to look for alternative investment opportunities for income and capital preservation.
Fall Into ETF Investing: Your Guide to ESG ETF Investing
ESG (Environmental, Social, Governance) Investing is on the rise as investors become more interested in the idea of aligning their investments with their values and see that in order to do so, they don’t necessarily need to give up performance.
Jessica Moorhouse, host of the More Money Podcast and millennial money expert joins Paul Riccardella, Executive Director at MSCI, leader in ESG Indexes, and Rosa Van Den Beemt our very own Engagement and Active Ownership expert at BMO Global Asset Management.
Fall Into ETF Investing: Building a Strong Foundation - Broad Market ETFs
A portfolio is only as strong as it’s core. In this session we go back to where it all started when it comes to ETFs, broad market ETFs. These simple to use, low cost index trackers remain a powerhouse when it comes to building a core portfolio.
Host of the Build Wealth Canada Podcast, and founder of the Canadian Summit, Kornel Szrejber will unpack this topic with experts Alfred Lee, Portfolio Manager and Investment Strategist at BMO ETFs, and Graham Mackenzie, Head of ETFs with the TMX, Canada’s largest stock exchange.
Fall Into ETF Investing: Income Enhancements For Your Portfolio
For many investors, receiving reliable and consistent income from their investments is a primary objective. Whether it is to fund retirement, offset reoccurring expenses, or to cover annual vacation costs, investors love generating cash flows from their portfolios.
Fall Into ETF Investing: Time To Take Another Look At Bond ETFs
In this session we will break down how rising rates and the fed’s aggressive stance on policy tightening are impacting the bond market negatively but how investors shouldn’t give up on bonds altogether. The asset class’s role as a long-term diversifier and hedge in your portfolio may be needed in this economic environment.
Dividend Growth – Resiliency in Volatile Markets
The MSCI World Index and MSCI World Information Technology Index (a proxy for high growth stocks) have reached bear market territory, falling more than 25% year to date. Most of this year’s stock market decline has come from earnings multiple contraction driven by rising inflation and interest rates. However, dividend growth stocks (represented by the MSCI World Dividend Masters Index) have shown strong resilience and outperformed both indices during this year’s market downturn with less volatility as shown in the chart and table below.