- New equity and fixed income ETFs give investors opportunities for income and growth
- Non-currency hedged and currency hedged products provide investors with more choice
- Since its introduction in 2009, BMO AM's ETF business has expanded to 58 funds and more than $12 billion in AUM ...
Sign up for our weekly Newsletter and receive the latest ETF and ETC news.
Click here to register for your free copy
BMO Asset Management Inc. (BMO AM) today introduced seven Exchange Traded Funds (ETFs). The new equity and fixed income based ETFs will help investors achieve their objectives of income, growth and diversification.
"These new ETFs feature innovative approaches to fixed income investing, including new strategies and precise exposure. They also offer investors more international growth opportunities and include the first ETF in Canada that tracks a MSCI Quality Index," said Kevin Gopaul, Chief Investment Officer and Senior Vice President, BMO Asset Management Inc. "We're also adding to our unhedged suite of international ETFs to give investors more ways to access well-known market indices."
Mr. Gopaul added, "We look forward to continuing to add to our ETF line-up with a focus on developing market leading, cost-effective offerings that address key investor needs."
With these additions, BMO AM's ETF line-up now stands at 58 funds and includes multiple industry firsts. Since being introduced in 2009, the business has grown to more than $12 billion in assets under management (AUM). According to a recent report by BMO Global Asset Management, the Canadian ETF industry continued to grow in 2013 and currently stands at $63.1 billion in AUM - up $5 billion over last year.
The offering of the following new ETFs has closed, and they will begin trading on the Toronto Stock Exchange today:
BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ): The listing will provide investors with exposure to a diversified portfolio of high quality European equities by tracking the MSCI Europe Quality 100% Hedged to CAD Index, which screens large-and mid-cap stocks for high return on equity, stable earnings growth and low financial leverage. This ETF will largely mitigate volatility between the European currencies and Canadian dollar by using a currency hedge.
BMO US High Dividend Covered Call ETF (ZWH): The listing will offer non-currency hedged exposure to dividend-paying U.S.-based equities of 30 large-cap stocks diversified across several different sectors. This ETF includes a covered call overlay which increases yield while reducing volatility.
BMO Equal Weight US Banks Index ETF (ZBK): This ETF will provide access to a portfolio of large-cap U.S. banks by tracking the Dow Jones U.S. Large-Cap Banks Equal Weight Total Stock Market Index. The listing is the non-currency hedged complement to the existing BMO Equal Weight US Banks Hedged to CAD Index ETF (ZUB).
BMO MSCI EAFE Index ETF (ZEA): This non-currency hedged ETF will offer access to a diversified portfolio of equities from developed markets (excluding North America) by tracking the MSCI EAFE Index - the most recognized benchmark for international equities. This ETF will complement the existing BMO MSCI EAFE Hedged to CAD Index ETF (ZDM).
BMO Discount Bond Index ETF (ZDB): The listing will provide investors with unique exposure to the broad based Canadian income universe through the FTSE TMX Canada Universe Discount Bond Index and will only hold investment grade issues trading near or below par.
BMO Short-Term US IG Corporate Bond Hedged to CAD Index ETF (ZSU): This ETF will provide investors with broad exposure to U.S. investment grade corporate bonds based on tracking the Barclays US Investment Grade 1 to 5 Year Corporate Bond Capped Index CAD Hedged. The U.S. corporate bond universe is more diversified by sectors and issuers than the Canadian space. The listing will focus on the less interest rate sensitive short-end of the yield curve and will complement the existing BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU).
BMO Floating Rate High Yield ETF (ZFH): The listing will invest in Canadian Treasury-bills and sell protection to gain exposure to the credit spread to a diversified transparent portfolio of U.S. high yield corporate bonds.
*BMO ETFs are managed and administered by BMO Asset Management Inc., a portfolio manager and investment fund manager and separate legal entity from Bank of Montreal.
Source: ETFWorld - BMO Asset Management Inc