BMO Releases Mid-Year ETF Report

On Tuesday, BMO Global Asset Management (BMO) released its mid-year report on exchange-traded funds (ETFs), highlighting the record growth and continued popularity of ETFs in Canada.

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The report presents expert views from BMO Global Asset Management’s ETF team on the Canadian ETF market and key themes for the remainder of the year, including inflation risk, growth and innovation, ESG, financial sector, and dividend and value.

Mark Raes, Head of Product, BMO Global Asset Management Canada, said, “The market seems to be moving faster than ever, pivoting with each trending headline: vaccine news, political shifts, company earnings. Agility is key in this environment and more investors than ever are seeing how ETFs can play an important role in their portfolio strategy. ETFs continue to maintain their popularity as portfolio staples, as proven by another six-month inflow record and continued trading liquidity.”

As of June 30, 2021, ETF flows reached C$30 billion in the first half of the year, breaking the six-month inflow record reached a year ago. (See Bank of Montreal stock charts on TipRanks)

On June 23, CIBC analyst Paul Holden kept a Buy rating on BMO while raising its price target to C$138.00 (from C$136.00). This implies 11.1% upside potential.

The rest of the Street is cautiously optimistic with a Moderate Buy consensus rating, based on 7 Buys, 2 Holds, and 1 Sell. The average Bank of Montreal price target of C$136.50 implies 9.8% upside potential to current levels.

TipRanks’ Smart Score

BMO scores a “Perfect 10” on the TipRanks Smart Score rating system, indicating that the stock has strong potential to outperform the overall market.