A lot is unfolding in real time. Some securities in BMO Equal Weight US Banks Index ETF (ticker: ZBK) and BMO Equal Weight US Banks Hedged to CAD Index ETF (Hedged Units) (ticker: ZUB) have been halted, leading to the bid/offer spreads on these two ETFs widening out.
CFA, CMT, DMS, Portfolio Manager and Investment Strategist, Exchange Traded Funds
Alfred is a portfolio manager and investment strategist at BMO ETFs, where he currently heads up the index equity team. His team currently manages some of the largest ETFs in Canada. In addition to his portfolio manager duties, Alfred also serves as the investment strategist for the team, putting together trade ideas and model portfolios for institutional and retail clients. Prior to moving to equities, Alfred was a lead portfolio manager on the entire fixed income BMO ETF line up and also spent a year seconded to the Bank of Canada, managing their Provincial Bond Purchase Program (PBPP), one of the central bank’s emergency asset purchase programs in 2020. Prior to joining BMO, Alfred worked at two other Canadian banks as a research analyst, focusing on macro-economics and ETFs and also worked in an institutional consultant practice of a major bank.
Current Trade Ideas
In the wake of Silicon Valley Bank’s collapse, investors are left wondering: what’s next? On today’s special episode, portfolio managers Alfred Lee, Om Karmalkar, and your host Kevin Prins look for signs of contagion in other regional banks and analyze what cards the Fed has to play. They also discuss where the trouble began, inflation, volatility in the bond market, a silver lining for equities and ways to capitalize on Canadian banking.
Bond markets are once again grappling with the spectre of higher interest rate increases from the Fed, with high-yield issuers facing the fastest pace of ratings downgrades since early 2020. On today’s episode, portfolio managers Winnie Jiang, Alfred Lee and your host Mckenzie Box explore how investors should position their current fixed-income exposures. They also discuss the resurgence of Canadian REITs this year as the Bank of Canada pauses its rate-hiking cycle for the time being, while also diving into the steepening yield-curve inversion and what it portends for the so-called soft- and hard-landing scenarios for the U.S. and Canadian economies.
With inflation data diverging, odds are growing that monetary policy will follow suit with the Fed forced to continue tightening interest rates while the Bank of Canada hits pause. On today’s episode, portfolio managers Chris McHaney, Alfred Lee and your host Mckenzie Box discuss how to benefit from the expected policy divergence as the greenback strengthens in the near term. They also discuss the Canadian banks’ quarterly results, as well as the outlook for healthcare stocks.
After a strong run, the U.S. dollar rally is fading fast as emerging-markets and gold stage respective comebacks after slumping through 2022. In today’s episode, portfolio managers Chris McHaney, Alfred Lee, and your host, McKenzie Box, discuss how investors can hedge currency positions to take advantage of these shifts. They also dive into whether direct exposure to gold or gold-mining equities is the better way to capitalize on the metal’s bullish outlook.
2022 was a challenging time in the markets, which had investors riding the waves of uncertainty. As we enter the new year, are inflation and interest rates trending in the right direction? In this episode, Erika Toth and Alfred Lee discuss the latest quarterly Portfolio Strategy and Fixed Income Strategy Reports, which explore the 2023 market outlook, central banks, gold, key risks, and portfolio construction across various asset classes.
As hikes slowly work their way into the financial system, higher rates continue to be a primary market concern. How can investors combat these persistent challenges? In this episode, Erika Toth and Alfred Lee discuss the latest quarterly Portfolio Strategy and Fixed Income Strategy Reports, which explore the fight against inflation, the Bank of England bailout, the future of the 60/40 portfolio model, and sector opportunities.
After a volatile start to the year, headline risk stemming from the Russian invasion of Ukraine and COVID-19 takes a backseat to sticky inflation. As a result, investors are faced with a potential economic slowdown unlike any seen before. How should they prepare? In this episode, Alfred Lee and Erika Toth discuss the latest quarterly Portfolio Strategy and Fixed Income Strategy Reports, including current views on inflation’s trajectory, portfolio construction across various asset classes, real yields, structural supply issues, and strategies for protecting against falling equities.
Given ongoing uncertainties around interest rates, inflation, and the Russia-Ukraine conflict, what approach should Advisors and investors be taking when it comes to portfolio construction? In this episode, Alfred Lee and Erika Toth discuss the latest quarterly Portfolio Strategy and Fixed Income Strategy Reports, including asset allocation considerations, the outlook for the Energy, Banks, and Real Estate Investment Trusts sectors, and fixed income positioning.
The new BMO Canadian Bank Income Index ETF (Ticker: ZBI) is an innovation in fixed income, but how does it fit into a portfolio? In this episode, Alfred Lee and Rob Butler dive deep into the benefits of fixed income ETFs, the process behind creating ZBI and the objectives in crafting its investment exposure, the three components that make up ZBI, and expectations for the future.
Performance and Strategy Updates
All prices, returns and portfolio weights are as of market close on December 31, 2022, unless otherwise indicated.
All prices, returns and portfolio weights are as of market close on September 30, 2022, unless otherwise indicated.
Fixed Income ETFs
This report highlights our fixed income positioning strategies for the first quarter beginning January 1, 2023 (calendar year).
This report highlights our fixed income positioning strategies for the fourth quarter beginning October 1, 2022 (calendar year).
This report highlights our fixed income positioning strategies for the third quarter beginning July 1, 2022 (calendar year)