E94 – Watching China’s Real Estate Crisis Unfold

BMO ETFs: Views from the Desk

Alarm bells rang out across global markets this week, as a major Chinese real estate developer failed to meet its regularly scheduled coupon payment. Investors were left wondering: Is this China’s “Lehman Brothers” moment? In this episode, Mark Raes, Chris Heakes and Matt Montemurro discuss the latest developments of the Evergrande story, and whether the ripple effects will reach Canadian shores. Our experts also talk about bond positioning, low volatility as a tool for riding out market risks, and of course, the recent Canadian election.

Read the episode summary.

Mark Raes is the Head of Product at BMO Global Asset Management. He is joined on the podcast by Chris Heakes and Matt Montemurro, both Portfolio Managers and ETF Specialists at BMO Global Asset Management. The episode was recorded live on September 22, 2021.

ETFs mentioned in the podcast:

• BMO Equal Weight REITs Index ETF (Ticker: ZRE)
• BMO Aggregate Bond Index ETF (Ticker: ZAG)
• BMO Low Volatility Canadian Equity ETF (Ticker: ZLB)
• BMO S&P/TSX Capped Composite Index ETF (Ticker: ZCN)
• BMO Clean Energy Index ETF (Ticker: ZCLN)
• BMO Real Return Bond Index ETF (Ticker: ZRR)

Disclosures:

The viewpoints expressed by the Portfolio Manager represent their assessment of the markets at the time of publication. Those views are subject to change without notice at any time without any kind of notice. 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. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance.

S&P/TSX Capped Composite® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and “TSX” is a trademark of TSX Inc. These trademarks have been licensed for use by S&P Dow Jones Indices LLC and sublicensed to BMO Asset Management Inc. in connection with the above mentioned BMO ETFs. These BMO ETFs are not sponsored, endorsed, sold or promoted by S&P Dow Jones LLC, S&P, TSX, or their respective affiliates.

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.

For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.

BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp., BMO Asset Management Limited and BMO’s specialized investment management firms.

®/™Registered trade-marks/trade-mark of Bank of Montreal, used under licence.