In this episode, Matt Montemurro, and your host, Acushla Vestby, explore the evolution of the traditional bond laddering strategy—and what the next generation of target maturity bond ETFs has in store for investors.

Acushla Vestby is the Managing Director and Head of Structured Solutions & National Accounts at BMO GAM. She is joined on the podcast by Matt Montemurro, Managing Director & Head of Fixed Income & Equity Index ETFs at BMO Exchange Traded Funds. The episode was recorded live on Feb 21, 2025.

ETFs mentioned:

• BMO Target 2027 Canadian CorporateBond ETF (Ticker: ZXCO)
• BMO Target 2028 Canadian CorporateBond ETF (Ticker: ZXCP)
• BMO Target 2029 Canadian CorporateBond ETF (Ticker: ZXCQ)

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).Liquidity: The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. Cash is considered to be the most liquid asset, while things like fine art or rare books would be relatively illiquid.Volatility: Measures how much the price of a security, derivative, or index fluctuates. The most commonly used measure of volatility when it comes to investment funds is standard deviation.Yield to maturity (YTM): The total expected return from a bond when it is held until maturity – including all interest, coupon payments, and premium or discount adjustments.

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