E241 – What to Expect from Interest Rates

BMO ETFs: Views from the Desk

Might we see a jumbo rate cut from the Bank of Canada in October? In today’s episode, Portfolio Manager Matt Montemurro, and your host, Mckenzie Box, examine rate cut expectations for the rest of 2024. They also delve into China’s aggressive stimulus measures.

McKenzie Box is VP of Product Management and Strategy at BMO Global Asset Management (BMO GAM). She is joined by Matt Montemurro, Head, Fixed Income and Equity Index ETFs, ETFs, at BMO GAM. The episode was recorded live on Wed, Oct 9, 2024.

ETFs:

• BMO Aggregate Bond Index ETF (Ticker: ZAG)
• BMO Discount Bond Index ETF (Ticker ZDB)
• BMO Long Federal Bond Index ETF (Ticker: ZFL)
• BMO Long Provincial Bond Index ETF (Ticker: ZPL)
• BMO Long Corporate Bond Index ETF (Ticker: ZLC)
• BMO Long-Term US Treasury Bond Index ETF (Ticker: ZTL)
• BMO US Aggregate Bond Index ETF (Ticker: ZUAG)
• BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (Ticker: ZMU)
• BMO MSCI China ESG Leaders Index ETF (Ticker: ZCH)

The Chinese stock market rose 33% between Sept 15 and Oct 4, 2024, according to Bloomberg.

Golden Week: A seven-day public holiday in China.

Quantitative Easing (QE): a form of monetary policy which aims to stimulate the economy.

Canadian ETF Flows, National Bank, Sept 2024

Disclaimers:

The viewpoints expressed by the speakers 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 prospectus.

The BMO ETFs or securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. (“MSCI”), and MSCI bears no liability with respect to any such BMO ETFs or securities or any index on which such BMO ETFs or securities are based. The prospectus of the BMO ETFs contains a more detailed description of the limited relationship MSCI has with MO Asset Management Inc. and any related BMO ETFs.

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 ETFs 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 the BMO ETFs, please see the specific risks set out in the BMO ETF’s 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.

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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