Maintaining perspective through challenging markets

The rapid spread of the coronavirus worldwide has roiled financial markets. To help you navigate these uncertain times, explore the latest insights from our top investment experts. These resources are designed to help you weather the storm and stay focused on your long-term plan.

ETF solutions for market volatility

Seek to reduce equity risk

Stay invested but reduce equity risk through currency exposure and defensive style factors: Holding unhedged exposure to global stocks can reduce equity volatility for Canadian investors, thanks to the pro-cyclical behaviour of the Canadian dollar which has proved beneficial during the recent sell off. In our tactical asset allocation framework, we focus on the minimum volatility and quality style factors, which tend to be more resilient during growth slowdowns.

Diversify portfolios with bonds

Diversify and maintain a balanced portfolio: We highlight the ballast properties of Canadian government bonds. While questions have emerged about the long-term diversification benefits of government bonds at historically low interest rate levels, they have so far proven to be strong portfolio stabilizers during the crisis.

Build sustainable portfolios

Seek to build portfolio resilience with sustainable assets: It’s easy to lose sight of long-term perspectives amid the extraordinary market moves in recent weeks. We focus on looking beyond short-term volatility and keeping abreast of longer-term trends. One enduring trend we see is a move to sustainable investing: a structural shift in investor preferences leading to large, and persistent flows into assets perceived as more resilient to ESG risks.