BMO Global Asset Management: Using Low Volatility ETFs to Stay Invested Through Market Swings

How beta-driven strategies are helping investors balance risk and long-term growth

In today’s uncertain markets, keeping investors calm and committed to their long-term goals is more important than ever. That’s where low volatility strategies come in—designed to reduce exposure to highly volatile stocks and help portfolios weather market downturns. Zayla Saunders, from BMO Global Asset Management, explains how BMO uses five-year beta as a core metric to identify stocks less sensitive to broad market swings.

At BMO, the approach goes beyond screening. With thoughtful portfolio construction and sector constraints, the goal is to maintain diversification and control risk. Saunders emphasizes that understanding the methodology behind a low volatility product is essential. Is it based on beta or standard deviation? What time frame is used? These details can shape outcomes dramatically.

Today, more investors are using low volatility ETFs as stabilizers—either as core holdings or defensive positions alongside growth assets. By managing both sector concentration and currency exposure, BMO aims to provide solutions that support smoother returns, even in global markets. These ETFs are designed to help investors stay invested and maintain a stable risk profile through volatile conditions—without needing to time the market.

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