BMO unveils five more ETF plays on Toronto Stock Exchange

Mar 8th, 2018 | By | Category: Alternatives / Multi-Asset

Canadian ETF provider BMO has launched five new exchange-traded funds on the Toronto Stock Exchange.

Kevin Gopaul, Head of BMO Global Asset Management Canada

Kevin Gopaul, Head of BMO Global Asset Management Canada

Among the new funds are three Canadian fixed income ETFs, including short-term bonds, corporate bonds, and government bonds, and two 

“As one of the top 10 fixed income ETF providers globally, we’re excited to build on our successful and comprehensive suite,” said Kevin Gopaul, Head of BMO Global Asset Management Canada.

“We recognize that investors are searching for solutions in a rapidly changing fixed income market. We deliver tailored ETFs that are as wide or as precise as investors’ needs to build the best possible portfolios.”

The BMO Short-Term Bond Index ETF (ZSB) offers exposure to 1-5 year Canadian investment-grade bonds. The fund tracks the performance of the Bloomberg Barclays Canadian Government/Credit 1-5 Years Index and has a maximum annual management fee of 0.09%. 

The BMO Corporate Bond Index ETF (ZCB) offers exposure to Canadian investment grade corporate bonds across all sectors and maturities. The fund tracks the Bloomberg Barclays Canadian Corporate Index and has a maximum annual management fee of 0.15%. 

The BMO Government Bond Index ETF (ZGB) offers exposure to Canadian federal, provincial and municipal bonds across all sectors and maturities. The funds tracks the Bloomberg Barclays Canadian Treasury and Government-Related Index and has a maximum annual management fee of 0.15%. 

BMO is also adding hedged and unhedged options to existing ETFs:

The BMO Europe High Dividend Covered Call ETF (ZWP) offers exposure to a portfolio of dividend-paying European companies with a covered call overlay.

The underlying portfolio is yield-weighted and broadly diversified across sectors. The fund screens for securities for dividend growth, sustainability, and option liquidity and also dynamically writes covered call options.  The fund has a maximum annual management fee of 0.65%. 

The BMO US High Dividend Covered Call Hedged to CAD ETF (ZWS) provides exposure to a portfolio of dividend-paying US companies with a covered call overlay.

The underlying portfolio is yield-weighted and broadly diversified across sectors. The fund screens for securities for dividend growth, sustainability, and option liquidity and also dynamically writes covered call options. The option premium provides limited downside protection. The US currency exposure is hedged back to the Canadian dollar. The fund has a maximum annual management fee of 0.65%. 

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