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Volatile markets call for innovative solutions

Volatile markets call for innovative solutions

These BMO solutions have the ability to invest in asset classes that offer both defensive and offensive potential, positioning the portfolios for performance in any market.


BMO Low Volatility ETFs

  • Beta measures an investment’s sensitivity to market volatility. Low Beta investments are engineered to provide lower risk than the broad market while still providing growth opportunities.
  • BMO’s Low Volatility ETF strategies use Beta as the primary investment selection and weighting criteria.

BMO Tactical Dividend ETF Fund

  • Dividend ETFs tend to outperform over the long term with less volatility than the broad market.
  • BMO Tactical Dividend ETF Fund combines active, tactical management with passive dividend paying ETF investments.
  • Portfolios that reduce risk while staying invested
  • Risk reduction aimed to smooth out market highs and lows
  • Confidence to stay the course over the long-term
  • Portfolio stability with performance in any market
  • Versatility of Mutual Fund and ETF options.



The challenge: defend against market volatility

The challenge: defend against market volatility

Source: BMO Global Asset Management


Source: BMO Global Asset Management

Volatility has picked up

Volatility, which refers to the degree of change in asset prices, has returned after hitting historic lows in 2017. To navigate this challenge, investors should consider BMO Low Volatility solutions to dampen the impact that these rapid fluctuations can have on their portfolios.



10 Worst Days: BMO Tactical Dividend ETF Fund vs Global Equities

Volatile markets can lead to bad days, with negative returns. Investing in the BMO Tactical Dividend ETF Fund can help manage downside risk and lower the impact of these downturns.

Source: Morningstar Direct, November 2018 (since inception of BMO Tactical Dividend ETF Fund, April 12, 2013). BMO Tactical Dividend ETF Fund Series F versus MSCI World Index Total Return (CAD) for global equities.



Source: Morningstar data as of November 30, 2018, based on daily returns. ZLB is compared to the S&P/TSX Composite Index TR, ZLU is compared to S&P 500 Composite Index CAD and ZLI is compared to MSCI EAFE Index CAD.

Capture upside, limit downside

Upside/downside capture ratios show how an investment has performed relative to the broad market during rising and falling markets. BMO Low Volatility ETFs have captured the majority of market ups and effectively limited the downs. BMO’s suite of Low Volatility ETFs were made for markets like this, seeking to provide growth while protecting from market corrections by selecting and weighting to lower beta securities.




Learn about more options for defensive growth

Learn about more options for defensive growth




Resources for you and your business

Resources for you and your business

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Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual fund investments. Please read the ETF facts, fund facts or prospectus of the relevant mutual fund before investing. Mutual 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 Mutual Funds, please see the specific risks set out in the prospectus. ETF Series of the BMO Mutual Funds 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.

The BMO ETFs or securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. (“MSCI”), and MSCI bears no liability with respect to any such BMO ETFs or securities or any index on which such BMO ETFs or securities are based. The prospectus of the BMO ETFs contains a more detailed description of the limited relationship MSCI has with BMO Asset Management Inc. and any related BMO ETFs.

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

BMO ETFs are managed and administered by BMO Asset Management Inc., an investment fund manager and portfolio manager and separate legal entity from the Bank of Montreal. BMO Mutual Funds refers to certain mutual funds and/or series of mutual funds offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal.

®BMO (M-bar roundel symbol) is a registered trade-mark of Bank of Montreal.