Views from the Desk

Podcast: What Are ETF Flows Telling Us? - August 212024

Aug. 22, 2024

In this special episode, ETF Strategist Bipan Rai, and your host, Erika Toth, delve into the latest ETF industry flows and the top themes shaping markets amid recent bouts of volatility. They also explore several solutions to stay invested and keep calm when the market is not. 

Erika Toth is a Director of Institutional and Advisory for Eastern Canada at BMO Global Asset Management (BMO GAM). She is joined on the podcast by Bipan Rai, Head of ETF Strategy, at BMO GAM. The episode was recorded live on Wednesday, August 212024.

National Bank Financial Report – Canadian ETF Flows for July 2024.

VIX Index, as of 08/21/24

Outflows, BMO GAM, as of the week of August 12.

The market had biggest daily drop in nearly two years on August 52024.

Carry trade: When investors borrow in low-interest currencies to invest in higher-yield assets.

Correlation: A statistical measure of how two securities move in relation to one another. Positive correlation indicates similar movements, up or down together, while negative correlation indicates opposite movements (when one rises, the other falls).

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).

Magnificent Seven (Mag Seven) stocks include: Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla.


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