BMO launches its first active ETFs in Canada

Jun 4th, 2018 | By | Category: Fixed Income

BMO Investments has launched its first actively managed ETFs in Canada including three bond funds and one thematic equity strategy. The ETFs are available to trade on Toronto Stock Exchange.

Kevin Gopaul, head of BMO Global Asset Management Canada.

Kevin Gopaul, head of BMO Global Asset Management Canada.

“Building on the success of BMO’s line-up of passive ETFs, we’re launching the active ETF Series to give investors more options in terms of global exposure and income solutions,” said Kevin Gopaul, head of BMO Global Asset Management Canada. “With these ETF Series, we’re confident that we’re staying true to the values of the traditional ETF: good liquidity, the right amount of transparency and the right pricing.”

The BMO Core Plus Bond ETF (ZCPB CN) has a core Canadian bond strategy with the ability to invest in foreign bonds, emerging market debt and high yield bonds to enhance yield and provide diversification benefits. It actively seeks to capitalize on yield curve positioning, duration management, sector diversification, and security selection.

The fund has a management expense ratio (MER) of 0.56%. Its yield to maturity is 3.2% and its effective duration is 6.9 years.

The BMO Global Strategic Bond ETF (ZGSB CN) provides a multi-sector approach to global credit investing, including US investment grade and global high yield bonds and debentures, and emerging market debt, designed to achieve better long-term risk-adjusted returns for investors. The portfolio manager uses fundamental and quantitative analysis of credit ratings to discern pockets of value.

Its MER is 0.82%. The fund’s yield to maturity is 5.4% and its effective duration is 5.3 years.

The BMO Global Multi-Sector Bond ETF (ZMSB CN) invests around the world in fixed income securities, including government bonds, securitized debt, investment grade bonds, high yield bonds, and emerging market debt. The fund’s manager will rotate between these sectors when the assessment of value changes.

Its MER is 0.67%. The fund’s yield to maturity is 3.5% and its effective duration is 4.0 years.

“In today’s environment of rising interest rates and volatile yields, investors need to look beyond their borders and take advantage of global opportunities,” said Gopaul. “With a true active manager, they are able to tap into hard-to-access asset classes and provide the returns that investors are seeking.”

The equity product in BMO’s range of active fund launches is the BMO Women in Leadership ETF (WOMN CN). WOMN consists of a portfolio of companies with both gender-diverse leadership and a commitment to gender diversity. The ETF invests in North American equities that have both or either 25% representation of women on the board of directors or a female chief executive officer.

Its MER is 0.39%. Income generated within the fund’s portfolio is distributed to investors on an annual basis.

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