ETFs providing exposure to emerging market (EM) equities may offer a buying opportunity for value-seeking investors following the asset class’s sell-off earlier in the year, according to BMO Global Asset Management’s Morgane Delledonne.

The emergence of free asset allocation models, subsidized by expense ratios of proprietary funds, are threatening to disrupt third-party strategists, according to a report authored by Tom O’Shea, Director at Cerulli Associates.

BMO Global Asset Management has reduced the fees on a number of its London Stock Exchange listed corporate bond and equity income ETFs. Kevin Gopaul, Head of Quantitative Strategies & ETFs at BMO Global Asset Management, commented, “As our ETF business has continued to grow globally, we have been able to build economies of scale, which means we are now in a position to pass even further cost savings onto our clients.”

Horizons ETFs has unveiled Canada’s first actively managed emerging markets bond ETF: the Horizons Active Emerging Markets Bond ETF (HEMB CN) on Toronto Stock Exchange. “With the constantly evolving conditions within emerging bond markets, we believe active management is the only way to go for this sector,” said Steve Hawkins, president and co-CEO of Horizons ETFs.

Dividend cover for the UK’s 350 largest listed companies has more than doubled in the past year, boosting the appeal of UK equity income ETFs. “Rocketing profits among UK plc has driven a rapid recovery in dividend cover, much to the relief of income investors, who had justifiably begun to worry that their dividends might not be sustainable,” said Helal Miah, research investment analyst from The Share Centre.

By Morgane Delledonne, ETF investment strategist, BMO Global Asset Management.

Synchronised economic growth coupled with a gradual normalisation of monetary policy in developed economies should continue to be supportive for high yield credit in the medium-term. Higher oil prices and rising interest rates have led investors to favour shorter-duration bonds with cyclical tilt, leading to the outperformance of high yield over investment grade bonds.

BMO Global Asset Management Canada 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, said, “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.”

Developed equity markets were relatively flat to slightly rising last week, while the US 10y Treasury yield rose to 3.11%, the highest since July 2011, and oil prices climbed to $79.3 per barrel on Thursday.

BMO Global Asset Management Canada has launched the BMO Global Communications Index ETF (COMM CN) on Toronto Stock Exchange. “This ETF provides investors with a unique balance of global companies that are reshaping and driving the market through communications, technology and new media,” said Kevin Gopaul, head of BMO Global Asset Management Canada.

Canadian ETF provider BMO has launched five new ETFs on Toronto Stock Exchange, three of which are fixed income. “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.