E218 – Fed Holds & Hints 3 Cuts to Come

BMO ETFs: Views from the Desk

As expected, the U.S. Federal Reserve left its key interest rate unchanged for the fifth consecutive time, while maintaining cuts are likely still to come. In today’s episode, Portfolio Managers Winnie Jiang, Chris Heakes, and your host, Erika Toth, break down the latest announcement. They also discuss the path to rate normalization, alternatives to HISA ETFs, and Energy.

The episode was recorded live on Wednesday, March 20, 2024.

ETFs mentioned in the podcast:

• BMO Money Market Fund ETF Series (Ticker: ZMMK)
• BMO S&P 500 Index ETF (Ticker: ZSP)
• BMO Ultra Short-Term Bond ETF (Ticker ZST)
• BMO USD Cash Management ETF (Ticker: ZUCM)*
• BMO USD Cash Management ETF (USD Units) (Ticker: ZUCM.U)
• BMO Ultra Short-Term US Bond ETF (USD Units) (Ticker: ZUS.U)
• BMO Ultra Short-Term US Bond ETF (US Dollar Accumulating Units) (Ticker: ZUS.V)
• BMO Equal Weight Oil & Gas Index ETF (Ticker: ZEO)
• BMO Covered Call Energy ETF (Ticker: ZWEN)

ZMMK, total returns as at 2024/02/29: 1yr: 5.08%, 2yr: 3.87%, SI: 3.45%

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

ZEO, total returns as at 2024/02/29: 1yr: 15.65, 3yr: 30.45%, 5yr: 13.41%, 10yr: 1.13%, SI: 1.18%

ZWEN, total returns as at 2024/02/28: 1yr: 9.12%

*Changes in rates of exchange may also reduce the value of your investment.

Disclaimers:

Annualized Distribution Yield: This yield is calculated by taking the most recent regular distribution, or expected distribution, (excluding additional year end distributions) annualized for frequency, divided by current NAV. The yield calculation does not include reinvested distributions.

The viewpoints expressed by the Portfolio Manager represents their assessment of the markets at the time of publication. Those views are subject to change without notice at any time. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. Past performance is no guarantee of future results. This communication is intended for informational purposes only.

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.

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