BMO Asset Management Inc. has introduced seven ETFs. With these additions, BMO AM’s ETF lineup now stands at 58 funds. The new ETFs begin trading on the TSX today.
Read: Emerging market ETFs feed boom-and-bust
BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ): Provides 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): Offers non-currency hedged exposure to dividend-paying U.S.-based equities of 30 large-cap stocks diversified across several sectors. Includes a covered call overlay that increases yield while reducing volatility.
BMO Equal Weight US Banks Index ETF (ZBK): Provides 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 offers 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).
Read: North American ETF flows dip
BMO Discount Bond Index ETF (ZDB): Provides 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): Provides 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.