The Bank of Canada kept its benchmark rate at 5% for the fifth consecutive time, saying it’s “too early” for cuts. In today’s episode, Portfolio Managers Omanand Karmalkar, Matt Montemurro, and your host, Erika Toth, examine the dynamics of inflation and explore what the future could hold. They also discuss tailwinds in the Utilities sector, a barbell strategy to add duration, and Japan’s market outlook.

Erika Toth is a Director of ETF Distribution at BMO ETFs. She is joined on the podcast by Omanand Karmalkar and Matt Montemurro, Portfolio Managers and ETF Specialists at BMO Global Asset Management. The episode was recorded live on Wednesday, March 6, 2024.

ETFs mentioned in the podcast:

BMO Covered Call Utilities ETF (Ticker: ZWU)

BMO Equal Weight Utilities Index ETF (Ticker: ZUT)

BMO Aggregate Bond Index ETF (Ticker: ZAG)

BMO Ultra Short-Term Bond ETF (Ticker: ZST)

BMO Long Federal Bond Index ETF (Ticker: ZFL)

BMO Japan Index ETF (Hedged Units) (Ticker: ZJPN.F)

BMO Japan Index ETF (Ticker: ZJPN)

BMO MSCI EAFE Index ETF (Ticker: ZEA)

ZWU, total returns as at 2024/02/29: 1yr: -2.09%, 3yr: 2.59%, 5yr: 2.19%, 10yr: 3.19%, SI: 3.71%

ZUT, total returns as at 2024/02/29: 1yr: -8.56%, 3yr: -3.74%, 5yr: 6.00%, 10yr: 6.75%, SI: 6.27%

ZST, total returns as at 2024/02/29: 1yr: 5.37%, 3yr: 2.53%, 5yr: 2.26%, 10yr: 1.88%, SI: 1.95%

Nikkei hit a record high on Feb 22, 2024.

Disclosure:

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Weighted Average Yield to Maturity: The market value weighted average yield to maturity includes the coupon payments and any capital gain or loss that the investor will realize by holding the bonds to maturity.

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