It goes without saying that the markets have been volatile.
If you have clients that are panicking, it’s important to remind them to stay invested and presents an opportunity to pivot to a strategy that has a proven track record to minimize volatility: BMO’s suite of Low Vol ETF Strategies.
Over a 24 year cycle, if your client’s remained invested they would have seen a cumulative 468.2% return*.
If they missed out on just the 5 best days by running to cash, that return drops almost halves to 266.4%*.
A client friendly handout can be found here: Missing the Best Days in the Market
*Based on the S&P/TSX Composite TR Index from 1/1/2000 to 12/31/2024. Does not consider taxes, fees, or expenses.
BMO Segregated Funds not only offers the S&P500 and Nasdaq indices, but also BMO’s Low Vol US Equity ETF Strategy as well as Low Vol Canadian Equity ETF in both 75/75 and 75/100. It has performed exceptionally well, has been far less volatile than the broad indexes and allowed clients to participate in the upside of the market over time with less risk than the broad market.
Our low volatility solutions are ideal options for new and existing money when looking to build core holdings or re-balance, de-risk and diversify but remain invested in equities.
Underlying ETF Website: BMO ZLU ETF
BMO Low Vol US 75/100 Pager: BMO 75/75 Low Vol US Equity ETF Prestige
Here is how the BMO Low Vol US Equity has held up during recent market corrections:
YTD: +6.12%
2022 Tech Correction: +7.98%
YTD Compared to Peers: +493-1449 bps difference in performance from comparable 75/100 US Equity Funds
If you want to learn more about BMO’s Low Vol Strategies, please click here to discuss with me: Book Meeting with Me
BMO Market Commentary:
This Week With Sadiq: Click Here
- Equity markets slumped this week as the on-and-off trade conflict between the U.S. and its major trading partners continued.
- The S&P 500 fell 3.1%, with banks, energy and consumer discretionary posting the deepest declines, while defensives (e.g., health care and consumer staples) led the pack.
- Meantime, the TSX slipped 2.5%, with weakness in technology outweighing gains in telecom and consumer staples.
BMO ETF Portfolio Monthly Commentary: Click Here
BMO GAM Monthly House View: Click Here