Canada’s ETF ecosystem continues to expand at an extraordinary pace. Both shifting market conditions and strong investor demand for diversified, cost-efficient tools drive this expansion. These themes took front and center in a recent discussion between TMX VettaFi’s Todd Rosenbluth and Bipan Rai, managing director, head of ETF & alternatives strategy at BMO Asset Management. Rai reflected on a record-setting year for ETF flows and the strategies investors are gravitating toward heading into 2026.
Rai noted that accelerating ETF adoption reflects a combination of supportive market sentiment and significant household savings being put back to work. According to Rai, the standout story this year has been the renewed strength of commodities — especially gold. With supply expanding only modestly, global demand rising across central banks, investors, and jewelry buyers, and gold once again proving its value as an inflation hedge, Rai sees further room for upside.
Infrastructure ETFs Gain Traction as Global Spending Rises
Beyond commodities, Rai highlighted infrastructure as an increasingly compelling investment theme. With geopolitical dynamics shifting and governments worldwide issuing more debt to fund large-scale modernization — ranging from electricity grids to critical minerals — companies positioned in the infrastructure value chain stand to benefit. BMO Asset Management offers several ETFs in this category, many of which have performed strongly in the current environment.
Covered Call Strategies for Income in a Consolidating Market
Rai also emphasized BMO’s leadership in the covered call ETF space, an area that has seen consistent advisor demand. One example is the BMO Covered Call Technology ETF (ZWT), which targets U.S. tech while adding an income-generating overlay. For investors concerned about stretched valuations or the possibility of a consolidating market, ZWT provides a way to stay invested in growth sectors while capturing attractive yield — blending income and participation in one solution.
Closing the conversation, Rai noted that as markets evolve and uncertainty persists, ETF strategies tied to real assets, commodities, and systematic income overlays will continue to play an important role in portfolio construction for Canadian investors.
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