Can ETFs serve investors in uncharted market waters?

Industry insiders and experts to map out the possibilities in upcoming interactive panel discussion

Can ETFs serve investors in uncharted market waters?

The first quarter of 2023 is officially over, and the outlook on markets and the economy are as cloudy as when the year began.

While inflation appears to be on a decelerating arc, central bank policymakers have said they’re ready to bring down more rate hikes in case the economic data calls for it. But as the recent U.S. banking turmoil shows, there could still be more landmines lurking between now and the next era of stability – whenever that may be.

All throughout the difficulties from protracted rate-hiking and the more recent volatility, ETFs have proven their worth, allowing for both tactical and strategic portfolio management. But as the Canadian ETF space continues to grow and mature, it begs the question: what’s in store for for ETFs, and how can investors and advisors capitalize on that next phase?

Those questions and more will be on the table at Wealth Professional’s next Advisor Connect event titled “How ETFs can help you take advantage of market opportunities.” The free-for-advisors webinar will bring together experts from some of Canada’s leading ETF providers including RBC iShares, BlackRock, BMO Asset Management, Vanguard Canada, and Invesco Canada.

“ETFs offer many benefits to investors, providing strategic, low-cost core portfolio holdings and allowing investors to make adjustments to portfolios with ease to express their investment views and capture market opportunities,” says Rachel Siu, head of Canadian Fixed Income Strategy at BlackRock.

“Specific to fixed income, we see attractive opportunities for investors to use bond ETFs to achieve their portfolio objectives - whether to meet specific income targets, for capital preservation or to provide equity diversification,” Siu says.

She says the recent rise in global interest rates has brought yields across bond sectors to the highest levels in over a decade. In contrast to a year ago, investors can find attractive yields without having to reach into riskier parts of the market, while also potentially getting an additional income cushion against further rate moves.

“We look forward to participating in the Wealth Professional Advisor Connect on ETFs Roundtable to share our tactical implementation ideas, including our preference for shorter-duration, high-quality exposure,” Siu says. “With potential ‘financial cracks’ emerging from sustained rate hikes, we can also discuss the role of long-duration federal bonds as ballast against risk-off moves.”

See more details and register for the next WP Advisor Connect event on ETFs here.

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