E212 – U.S. Inflation Up. When Are Rates Coming Down?

BMO ETFs: Views from the Desk

ETFs mentioned in the podcast:

• BMO Equal Weight Utilities Index ETF (Ticker: ZUT)
• BMO Equal Weight REITs Index ETF (Ticker: ZRE)
• BMO Low Volatility Canadian Equity ETF (Ticker: ZLB)
• BMO MSCI USA High Quality Index ETF (Ticker: ZUQ)
• BMO Short-Term US TIPS Index ETF (Hedged Units) (Ticker: ZTIP)
• ZJAN - BMO US Equity Buffer Hedged to CAD ETF – January (Ticker: ZJAN)
• ZOCT - BMO US Equity Buffer Hedged to CAD ETF – October (Ticker: ZOCT)
• BMO Equal Weight US Banks Index ETF (Ticker: ZBK)
• BMO Equal Weight US Banks Hedged to CAD Index ETF (Ticker: ZUB)
• BMO Covered Call US Banks ETF (Ticker: ZWK)
• BMO Covered Call Technology ETF (Ticker: ZWT)
• BMO Global High Dividend Covered Call ETF (Ticker: ZWG)
• BMO Covered Call Canadian Banks ETF (Ticker: ZWB)

ZUT, total returns as at 2024/01/31: 1yr: -9.70%, 3yr: -14.39%, 5yr: 42.45% Since Inception (SI): 142.72%

ZRE, total returns as at 2024/01/31: 1yr: -8.44%, 3yr: 11.09%, 5yr: 19.40% SI: 178.50%

ZWG, total returns as at 2024/01/31: 1yr: 10.18%, 3yr: 27.03%, SI: 28.88%

ZWT, total returns as at 2023/10/31: 1m: 1.92%, 3m: -1.23%, 6m: 18.07%, YTD: 47.60%, 1yr: 45.60%, SI 8.62%

ZWT, total returns as at 2024/01/31: 1yr: 58.84%, 3yr: 53.87%, SI: 50.51%

XNDXCAD INDEX, total returns as at 2023/10/31: 1m: 0.59%, 3m: -3.34%, 6m: 11.81%, YTD: 35.87%, 1yr: 29.71%, SI 6.60%

Since 2010, 90% of the time the market is down over a one-year period, it has been down less than 15%. Source: Bloomberg as of June 30, 2023

Put spread: When an investor buys a put option on a strike and simultaneously sells another put option with a lower strike of the same expiry

Out-of-the-money (OTM): When the underlying asset’s market price is lower than the strike price for a call option.

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. 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.

They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus.

BMO Buffer ETFs seeks to provide income and appreciation that match the return of a Reference Index up to a cap (before fees, expenses and taxes), while providing a buffer against the first 15% (before fees, expenses and taxes) of a decrease in the Reference Index over a period of approximately one year, starting from the first business day of the stated outcome period.

An investor that purchases Units of a Structured Outcome ETF other than at starting NAV on the first day of a Target Outcome Period and/or sells Units of a Structured Outcome ETF prior to the end of a Target Outcome Period may experience results that are very different from the target outcomes sought by the Structured Outcome ETF for that Target Outcome Period.

This podcast is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.

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