This Week in ETFs: From From May 12-16

Canadian election aftermath: Three investment themes to watch

May 13, 2025

NEW: What Canada’s election results mean for investors | Listen to podcast

ETF FOCUS OF THE WEEK

  • Canadian election aftermath: With a minority government and uncertainty ahead of us, there are three themes that the Liberals, Conservatives and Bloc Québécois have in common: housing, infrastructure and defence. Here are a few factors to consider and several ways to invest around these themes. Read

INTRODUCING THE BASIS POINT

  • Will the U.S. dollar be dethroned? The greenback’s steady decline speaks to a change in structural factors that we don’t see dissipating any time soon — barring a substantial pivot in U.S. trade and foreign policy. While we think the U.S. dollar could lose more value long term, here are two direct reasons it will remain a reserve currency. Read

For more market insights and commentary from BMO ETFs Strategist Bipan Rai, please visit and bookmark The Basis Point.

READ OUR BEST TRADE IDEAS

  • Rated for resilience, structured for strength: Access the most senior tranche in the CLO cash flow waterfall with the new BMO AAA CLO ETF. Read
  • Earn more on your cash: Explore the key benefits of money market and ultra-short term bond ETFs. Read
  • Target your goals with precision: Get greater yield certainty with BMO Target Maturity Bond ETFs. Learn more

JOIN US INNOVATIVE INVESTING WITH BMO & SIA

  • Join us on May 22nd at 1:00 p.m. (ET), for a comprehensive webinar on SIA Wealth Management’s innovative approach to investing, featuring professional insights and strategies. | Register now

Date

Speakers

Thursday, May 222025 

Ted Bader,
Director, Private Wealth Services
SIA Wealth Management

Jason Leesui,
Director, Wealth Services
SIA Wealth Management

Erika Toth,
Director & Team Leader, ETF Distribution
BMO Global Asset Management

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FOR FINANCIAL ADVISOR USE ONLY.

No portion of this communication may be reproduced or distributed to clients.

CLOs are floating- or fixed-rate debt securities issued in different tranches, with varying degrees of risk, by trusts or other special purpose vehicles (“CLO Issuers”) and backed by an underlying portfolio consisting primarily of below investment grade corporate loans. The BMO ETF pursues its investment objective by investing, under normal circumstances, at least 85% of its net assets in CLOs that, at the time of purchase, are rated AAA or the equivalent by a nationally recognized statistical rating organization. 

AAA herein refers to the order of payments, should there be any defaults, and does not represent the ratings of the underlying loans within the CLO. If there are loan defaults or the CLO Issuer’s collateral otherwise underperforms, scheduled payments to senior tranches take precedence over those of mezzanine tranches (a tranche or tranches subordinated to the senior tranche), and scheduled payments to mezzanine tranches take precedence over those to subordinated/​equity tranches. The riskiest portion is the Equity” tranche, which bears the first losses and is expected to bear all or the bulk of defaults from the corporate loans held by the CLO Issuer serves to protect the other, more senior tranches from default. 

All investments involve risk. The value of an ETF can go down as well as up and you could lose money. The risk of an ETF is rated based on the volatility of the ETF’s returns using the standardized risk classification methodology mandated by the Canadian Securities Administrators. Historical volatility does not dictate how volatile an ETF will be in the future. An ETF with a risk rating of low” can still lose money. For more information about the risk rating and specific risks that can affect BMO AAA CLO ETF’s returns, see BMO AAA CLO ETF’s prospectus. 

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus of the BMO ETF before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated. 

For a summary of the risks of an investment in BMO AAA CLO ETF, please see the specific risks set out in the prospectus.

The portfolio holdings are subject to change without notice and only represent a small percentage of portfolio holdings. They are not recommenda­tions to buy or sell any particular security.

This communication 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.

The viewpoints expressed by the authors represents 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 provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. This communication is intended for informational purposes only.

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.

Past Performance is not indicative of future results.

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or simplified prospectus of the BMO ETFs before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Exchange traded funds 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, please see the specific risks set out in the BMO ETF’s simplified prospectus. BMO ETFs 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.

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc. and BMO Investments Inc. 

BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.