The risks posed by higher rates, still-stubborn inflation as well as small but growing cracks in the overall economy—notably in Canada—suggest a rotation into low-volatility strategies may be prudent. On today’s episode, portfolio managers Chris McHaney, Matt Montemurro and your host Mckenzie Box discuss options for investors looking to de-risk a portion of their equity allocations. They also break down the likelihood of rising corporate default rates and the impact that could have on high-yield credit, as well as examine whether it’s time to start adding to utilities, among the worst-performing sub-indexes in North America year-to-date. Read the episode summary.

Mckenzie Box is Director of Product at BMO Global Asset Management. She is joined on the podcast by Chris McHaney and Matt Montemurro, Portfolio Managers and ETF Specialists at BMO Global Asset Management. The episode was recorded live on September, 13, 2023.

ETFs mentioned in the podcast:

BMO Short-Term US TIPS Index ETF (Ticker: ZTIP)

BMO US TIPS Index ETF (Ticker: TIPS)

BMO US Aggregate Bond Index ET (ZUAG)

BMO Low Volatility Canadian Equity ETF (Ticker: ZLB)

BMO Low Volatility US Equity ETF (Ticker: ZLU)

BMO S&P 500 Hedged to CAD Index ETF (Ticker: ZUE)

BMO Floating Rate High Yield ETF (Ticker: ZFH)

BMO Short-Term US IG Corporate Bond Hedged to CAD Index ETF (Ticker: ZSU)

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.

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