This Week in ETFs: From May 13-17

One Sector That Looks Poised for a Breakout + Podcast Special ETF Industry Flows”

May 14, 2024

NEW: ETF Industry Flows | Listen to Podcast

ETF FOCUS OF THE WEEK 

  • A Long-Term Holding That Looks Poised for a Breakout: In anticipation of a rate decrease from the Bank of Canada, we may see the Utilities sector start to shine. Canadian government bond yields tend to have an inverse relationship with utilities (when interest rates drop, utility stock prices typically increase, and vice versa). Find out more on the long-term benefits and potential opportunities. Read the Strategy

READ OUR BEST TRADE IDEAS

  • BMO’s Top Six U.S. Equity ETFs: Explore a range of solutions to gain U.S. equity exposure. Read
  • Don’t Sacrifice Cash Flow for Growth: Get the potential for both with ZWQT. Read
  • Rotating for Success: Align your investment strategies with your market views. See Sector Wheel
  • U.S. Election Years Are Volatile: Here’s where the smart money goes. Read

KNOW YOUR PRODUCT

  • BMO Fixed Income ETFs Snapshot: An enriched data set, including tax equivalent yield. Read
  • What’s Trending in BMO ETFs: Essential charts and breakdowns by asset class and sector. Read
  • Volatility and Derivatives Insights: See our latest Covered Call and Enhanced Income Report. Read

LISTEN TO YOUR PORTFOLIO MANAGERS

  • Fed to Shrink Balance Sheet at Slower Pace. Matt Montemurro and Chris McHaney Listen | Read
  • Higher for Longer’ is Back. Matt Montemurro Listen | Read

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An investor that purchases Units of a Structured Outcome ETF other than 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. Both the cap and, where applicable, the buffer are fixed levels that are calculated in relation to the market price of the applicable Reference ETF and a Structured Outcome ETF’s NAV (as Structured herein) at the start of each Target Outcome Period. As the market price of the applicable Reference ETF and the Structured Outcome ETF’s NAV will change over the Target Outcome Period, an investor acquiring Units of a Structured Outcome ETF after the start of a Target Outcome Period will likely have a different return potential than an investor who purchased Units of a Structured Outcome ETF at the start of the Target Outcome Period. This is because while the cap and, as applicable, the buffer for the Target Outcome Period are fixed levels that remain constant throughout the Target Outcome Period, an investor purchasing Units of a Structured Outcome ETF at market value during the Target Outcome Period likely purchase Units of a Structured Outcome ETF at a market price that is different from the Structured Outcome ETF’s NAV at the start of the Target Outcome Period (i.e., the NAV that the cap and, as applicable, the buffer reference). In addition, the market price of the applicable Reference ETF is likely to be different from the price of that Reference ETF at the start of the Target Outcome Period. To achieve the intended target outcomes sought by a Structured Outcome ETF for a Target Outcome Period, an investor must hold Units of the Structured Outcome ETF for that entire Target Outcome Period.

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