Where should investors be looking abroad? In this deep dive episode, Bipan Rai, Johan Ahlberg, and host ErikaToth put international equities under the microscope. They explore trends in recent flows data, ways to diversify outside of Canada with ETFs and CDRs, and the outlook for the months ahead.
Erika Toth is Director, Institutional & Advisory, Eastern Canada at BMO Global Asset Management (BMO GAM). She is joined by Bipan Rai, Head of ETF Strategy, ETFs at BMO GAM and Johan Ahlberg, Director, Development & Strategic Advisory, Structured Solutions at BMO GAM. Recorded live on Oct 22, 2025.
ETFs:
EAFE: Europe, Australasia, and the Far East
ADR: American Depositary Receipt
ZEA is Canada’s largest EAFE ETF, National Bank Report, Sept 30, 2025.
Disclaimers:
Please see the full CLO ETFs disclaimers here.
Changes in rates of exchange may also reduce the value of your investment.
CLOs are floating- or fixed-rate debt securities issued in different tranches, with varying degrees of risk, by trusts or other special purpose vehicles (“CLO Issuers”) and backed by an underlying portfolio consisting primarily of below investment grade corporate loans. The BMO ETF pursues its investment objective by investing, under normalcircumstances, at least 85% of its net assets in CLOs that, at the time of purchase, are rated AAA or the equivalent by a nationally recognized statistical rating organization.
AAA herein refers to the order of payments, should there be any defaults, and does not represent the ratings of the underlying loans within the CLO. If there are loan defaults or the CLO Issuer’s collateral otherwise underperforms, scheduled payments to senior tranches take precedence over those of mezzanine tranches (a tranche or tranches subordinated to the senior tranche), and scheduled payments to mezzanine tranches take precedence over those to subordinated/equity tranches. The riskiest portion is the “Equity” tranche, which bears the first losses and is expected to bear all or the bulk of defaults from the corporate loans held by the CLO Issuer serves to protect the other, more senior tranches from default.
The viewpoints expressed by the speakers representtheir assessment of the markets at the time of publication. Those views are subject to change without notice at any time. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.
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