FD 132 - BMO Low Volatility Funds

Low volatility investing prioritizes capital preservation and steady growth by targeting stocks with low beta, typically around 0.6, to dampen market swings. By focusing on consistent, incremental gains rather than high-risk market timing, these strategies create resilient wealth that remains stable during periods of high volatility. Arielle Liang, a portfolio manager at BMO Global Asset Management, utilizes quantitative models to systematically reduce human error and emotional decision-making. Performance data from BMO’s Canadian (ZLB) and U.S. (ZLU) equity ETFs demonstrate that these funds effectively minimize drawdowns during market meltdowns, such as in 2022, while still participating in market rallies. Integrating these strategies into a portfolio provides a smoother investment experience, helping retirees maintain confidence and avoid the pitfalls of panic-selling during turbulent economic cycles.