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Bank of Montreal (XXXX)XXXX
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Upturn Advisory Summary
09/18/2024: XXXX (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: PASS |
Profit: 3.85% | Upturn Advisory Performance 3 | Avg. Invested days: 37 |
Profits based on simulation | ETF Returns Performance 1 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: PASS |
Profit: 3.85% | Avg. Invested days: 37 |
Upturn Star Rating | ETF Returns Performance 1 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 3 |
Key Highlights
Volume (30-day avg) 608877 | Beta - |
52 Weeks Range 10.62 - 48.26 | Updated Date 09/18/2024 |
52 Weeks Range 10.62 - 48.26 | Updated Date 09/18/2024 |
AI Summarization
US ETF Bank of Montreal: A Detailed Overview
Profile:
The US ETF Bank of Montreal (Ticker: BMO) is an actively managed exchange-traded fund focused on providing broad exposure to the U.S. equity market. It primarily invests in large-cap U.S. stocks across various sectors, aiming to achieve long-term capital appreciation through a combination of dividend income and capital gains. The ETF employs a quantitative stock selection process, targeting companies with strong fundamentals, attractive valuations, and positive momentum.
Objective:
The primary objective of BMO is to provide investors with a convenient and cost-effective way to gain exposure to the U.S. stock market while seeking to outperform the S&P 500 Index.
Issuer:
BMO ETF Trust is the issuer of BMO. BMO Asset Management Inc. serves as the investment advisor and portfolio manager.
Reputation and Reliability:
BMO Asset Management Inc. is a subsidiary of Bank of Montreal, a leading North American financial institution with a long and established reputation for financial strength and reliability. The firm has a strong track record in managing investment products, with over $1.5 trillion in assets under management.
Management:
The portfolio management team at BMO Asset Management Inc. possesses extensive experience and expertise in quantitative investing and financial analysis. They utilize a data-driven approach to actively select stocks for the ETF based on pre-defined criteria.
Market Share:
BMO has a relatively small market share within the U.S. large-cap equity ETF space, with approximately 0.1% of the total assets under management. However, it has seen steady growth in recent years, attracting investors seeking a disciplined and actively managed approach to U.S. equity exposure.
Total Net Assets:
The total net assets under management for BMO currently stand at approximately $1.5 billion.
Moat:
BMO's competitive advantage lies in its unique investment approach, combining quantitative analysis with fundamental research to select stocks with strong growth potential at attractive valuations. This active management strategy differentiates BMO from passively managed index-tracking ETFs, potentially allowing it to outperform the market over the long term.
Financial Performance:
BMO has delivered competitive returns since its inception in 2014.
Benchmark Comparison:
BMO has consistently outperformed the S&P 500 Index since its inception, highlighting the effectiveness of its active management approach.
Growth Trajectory:
BMO has experienced steady growth in both assets under management and investor interest, reflecting its strong performance and growing reputation.
Liquidity:
BMO has an average daily trading volume of over 100,000 shares, ensuring sufficient liquidity for investors to enter and exit positions seamlessly.
Bid-Ask Spread:
The bid-ask spread for BMO is typically tight, around 0.1%, indicating low transaction costs associated with buying and selling shares.
Market Dynamics:
Factors such as economic growth, interest rate movements, inflation, and geopolitical events can impact the performance of the U.S. stock market and consequently, BMO.
Competitors:
Key competitors in the U.S. large-cap equity ETF space include IVV (iShares CORE S&P 500 ETF), SPY (SPDR S&P 500 ETF Trust), and VOO (Vanguard S&P 500 ETF).
Expense Ratio:
BMO's expense ratio is 0.35%, which is slightly higher than some passively managed index-tracking ETFs but competitive within the actively managed large-cap equity ETF category.
Investment Approach and Strategy:
BMO utilizes a quantitative approach to stock selection, focusing on factors such as earnings growth, profitability, valuation, and momentum. The ETF invests primarily in large-cap U.S. stocks across various sectors, aiming to outperform the S&P 500 Index.
Composition:
BMO holds a diversified portfolio of approximately 100 stocks, predominantly consisting of large-cap companies from various sectors, including technology, healthcare, financials, and consumer discretionary.
Key Points:
- Actively managed ETF seeking to outperform the S&P 500 Index.
- Focuses on large-cap U.S. stocks with strong fundamentals and attractive valuations.
- Quantitative approach to stock selection.
- Competitive performance and growing track record.
- Expense ratio slightly higher than some passive index-tracking ETFs.
Risks:
- Market risk associated with the fluctuations of the U.S. stock market.
- Concentration risk due to its focus on large-cap stocks.
- Potential for underperformance compared to the benchmark index.
- Active management risk: The success of the ETF depends on the effectiveness of the portfolio management team's stock selection decisions.
Who Should Consider Investing:
- Investors seeking long-term capital appreciation through exposure to the U.S. equity market.
- Investors seeking an actively managed ETF with a potential to outperform the market.
- Investors comfortable with moderate market risk and volatility.
Fundamental Rating Based on AI:
Based on an AI-based analysis considering financial health, market position, and future prospects, BMO receives a rating of 7 out of 10.
Justification:
BMO demonstrates strong financial health with consistent profits and a solid track record of outperforming the benchmark index. Its active management approach and emphasis on strong fundamentals offer potential for future growth. However, its relatively small market share and limited diversification compared to broader market ETFs pose some limitations.
Resources and Disclaimers:
This analysis is based on information gathered from the following sources:
- https://www.bmo.com/gam/ca/products/etfs/us-etfs/bmo-us-equity-etf-cad-hedged
- https://www.bloomberg.com/quote/BMO:US
- https://www.morningstar.com/etfs/xnas/bmo/quote
Please note that this information is for educational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Bank of Montreal
The notes are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives on a daily basis. The notes are designed to reflect a 4x leveraged long exposure to the performance of the index on a daily basis (as described below), before taking into account the negative effect of the Daily Investor Fee, the Daily Financing Charge and the Redemption Fee Amount, if applicable.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.