E170 – Playing Defense as Regional Bank Risks Persist

BMO ETFs: Views from the Desk

Investor sentiment is divided on whether or not the liquidity crunch that hit U.S. regional lenders in early March is over, or there are still more ripple effects to come for the financial system. On today’s episode, portfolio managers Alfred Lee, Chris McHaney and your host Mckenzie Box discuss how best to position investors’ exposure to financial stocks. They also decipher what “additional tier-one” bonds are, and the relative safety of these securities within broader portfolios. And finally, some fixed-income strategies to consider in the wake of the latest quarter-point interest rate hike from the Fed. Read the episode summary.

Mckenzie Box is Director of Product and Strategy at BMO Global Asset Management. She 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 March, 29, 2023.

ETFs mentioned in the podcast:

• BMO Clean Energy Index ETF (Ticker: ZCLN)
• BMO Canadian Bank Income Index ETF (Ticker: ZBI)
• BMO Equal Weight US Banks Hedged to CAD Index ETF (Ticker: ZUB)
• BMO Equal Weight US Banks Index ETF (Ticker: ZBK)
• BMO Covered Call US Banks ETF (Ticker: ZWK)
• BMO Long-Term US Treasury Bond Index ETF (Hedged Units) (Ticker: ZTL.F)
• BMO Long Federal Bond Index ETF (Ticker: ZFL)
• BMO Covered Call Technology ETF (Ticker: ZWT)

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.

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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