BMO expands suite of global sector ETFs

Apr 11th, 2017 | By | Category: Equities

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BMO Asset Management has added four exchange-traded funds to its suite of globally-diversified sector ETFs, bringing the total number of funds within the range to seven.

Kevin Gopaul BMO ETFs

Kevin Gopaul, Head of ETFs and Chief Investment Officer, BMO Asset Management.

The new additions, launched on the Toronto Stock Exchange, provide exposure to firms with developed market listings and which operate in the banking, consumer discretionary, consumer staples and insurance sectors.

“Investors are continuing to recognize the benefits of using ETFs for sector strategies, and we are excited to have expanded our suite,” said Kevin Gopaul, Head of ETFs and Chief Investment Officer, BMO Asset Management. “We have focused on key global exposures, consumer discretionary and consumer staples, where investors benefit from growing consumer purchasing power, banks which provides access to global economic growth and insurance where investors can benefit from a rising rate environment.”

Each ETF contains a built-in currency hedge mitigating the risk of adverse foreign exchange movements versus the Canadian dollar affecting portfolio performance.

The BMO Global Banks Hedged to CAD Index ETF (BANK) tracks the performance of the Russell Developed Large Cap Banks Capped 100% Hedged to CAD Index, providing investors with exposure to global banks.

The BMO Global Consumer Discretionary Hedged to CAD Index ETF (DISC) tracks the Russell Developed Large Cap Consumer Discretionary Capped 100% Hedged to CAD Index, providing investors with exposure to global consumer discretionary companies.

The BMO Global Consumer Staples Hedged to CAD Index ETF (STPL) tracks the Russell Developed Large Cap Consumer Staples Capped 100% Hedged to CAD Index, providing investors with exposure to global consumer staples.

The BMO Global Insurance Hedged to CAD Index ETF (INSR) tracks the Russell Developed Large Cap Insurance Capped 100% Hedged to CAD Index, providing exposure to global insurance companies.

Each index includes large and mid-cap companies according to the Russell Global Sector classification system, weighted by market capitalization with a 10% security cap. They are reconstituted and rebalanced on a quarterly basis.

Each ETF has an expected management expense ratio of 0.40%.

The other three ETFs in BMO’s suite of global sector ETFs include funds targeting infrastructure, gold mining and base metals mining companies.

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