Megatrends

You can't stop progress. Now you can invest in it.
Image
BMO ARK Innovation Fund ETF Series (ARKK)
BMO ARK Genomic Innovation Fund ETF Series (ARKG)
BMO ARK Next Generation Internet Fund ETF Series (ARKW)
What are Megatrends?
  • Megatrends represent the disruptive innovations driving powerful global movements that are predicted to direct future stock performance for the companies that are positioned to take advantage of each emerging theme
  • Megatrends emerge from demographic shifts, technological advances and adaption, and evolving consumer habits and behaviours. Megatrends are the drivers of disruptive innovations that are anticipated to transform the way we live and interact with the world
  • Companies with exposure to these Megatrends are the leaders, enablers and beneficiaries of these disruptive innovations, and this innovation is key to growth
  • Although there are many, BMO ETFs has identified several emergent Megatrends which have captured investment interest:

    • Genomics
    • Next Generation Internet
    • Autonomous Technology
    • Fintech
    • Clean Energy

Where do Megatrends fit in portfolio construction?
  • Core Allocations
    As a core holding, these exposures will evolve over time and will continue to capture growth as disruptive innovation plays out. Because thematic investing is top down and forward looking, it is capturing emerging trends that will continue to evolve and remain relevant as growth themes for the long term. BMO’s Innovation ETFs provide an all-cap, global and diversified exposure to these emergent themes, furthering the case to make them well suited as core portfolio holdings.
  • Tactical Allocations
    Investors who have high conviction views on disruptive innovation at certain points may want to emphasize a specific megatrend as a tactical position. For example, adding genomics to play on vaccine development or adding clean energy to play on the anticipated Biden Administration’s policy emphasis in this space.
  • Sector
    Thematic Investing is not constrained by sector classifications, however disruptive innovations are biased to certain sectors. Investors can add exposure to a megatrend as a substitute for a sector tilt in a portfolio. Further global adaption in addition to lowering costs to access each trend will all remain long-term tailwinds for these themes.
  • Growth Sleeve
    For investors who that desire growth sleeve within their portfolio to fund investment goals. Emerging trends are well positioned to capture disruptive equity growth
Further Reading
BMO ARK ETFs

This communication is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.

The portfolio holdings are subject to change without notice and only represent a small percentage of portfolio holdings. They are not recommendations to buy or sell any particular security.

Commissions, management fees and expenses (if applicable) all may be associated with investments in BMO ETFs and ETF Series of the BMO Mutual Funds. Please read the ETF facts or prospectus of the relevant BMO ETF or ETF Series before investing. BMO ETFs and ETF Series are not guaranteed, their values change frequently and past performance may not be repeated.

For a summary of the risks of an investment in the BMO ETFs or ETF Series of the BMO Mutual Funds, please see the specific risks set out in the prospectus. BMO ETFs and ETF Series trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.

BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal. ETF Series of the BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc. and BMO Investments Inc.
®/™Registered trade-marks/trade-mark of Bank of Montreal, used under licence.

Copyright © 2022 Prosper Experiential Media. All rights reserved. | Privacy Policy | Terms & Conditions

ETF Market Insights

© 2022 BMO Global Asset Management All rights reserved.