After another 50-basis point rate cut, the market is weighing where the Bank of Canada’s rate path goes from here. While the latest inflation print south of the border may complicate that trajectory. BMO Portfolio Manager Matt Montemurro, Head of Fixed Income and Equity Index ETFs, joins Bipan Rai, Managing Director, BMO ETFs Strategist, and your host Erika Toth, Director for BMO ETFs, Eastern Canada, to discuss how investors can play the central bank’s direction on monetary policy. This episode was recorded live on December 11, 2024.

ETFs:

BMO Ultra Short-Term Bond ETF (ZST)

BMO Long Federal Bond Index ETF (ZFL) 

BMO Long Provincial Bond Index ETF (ZPL)

BMO Short Provincial Bond Index ETF (ZPS)

BMO Mid Provincial Bond Index ETF (ZMP)

BMO Short Corporate Bond Index ETF (ZCS)

BMO Mid Corporate Bond Index ETF (ZCM)

BMO Canadian Bank Income Index ETF (ZBI)

BMO MSCI USA High Quality Index ETF (ZUQ)

References to flow data verified through National Bank Financial, as of Nov 30, 2024.

Magnificent 7 stocks: Apple Inc., Nvidia Corp., Microsoft Corp., Amazon.com Inc., Alphabet Inc., Meta Platforms Inc. Tesla Inc.

Duration: A measure of the sensitivity of the price of a Fixed Income investment to a change in interest rates. Duration is expressed as number of years. The price of a bond with a longer duration would be expected to rise (fall) more than the price of a bond with lower duration when interest rates fall (rise).

Beta: A measure of a stock's volatility relative to the market as represented by a benchmark (for example, the S&P 500).

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.

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