BMO today introduced seven Exchange Traded Funds (ETFs).
The new equity and fixed-income ETFs will allow investors to adjust the risk/return characteristics of their portfolio, as well as adapt their portfolio to changing market conditions.
“These additions to our ETF lineup can help investors construct their portfolios more effectively,” says Kevin Gopaul, chief investment officer and senior vice president, BMO Asset Management Inc. “Additionally, offering unhedged Canadian dollar units and U.S. dollar units on three of the ETFs will allow investors more choice in how to access different asset classes.”
Read: First Trust Portfolios to launch five ETFs
According to a recent report by BMO Global Asset Management, ETFs enjoyed tremendous growth in 2012: at year-end, the Canadian ETF industry had approximately $56.4 billion in assets under management, up 33% from 2011.
Canada had its largest ever annual inflows in 2012, at $12 billion.
The offering of the following new ETFs has closed and they begin trading on the Toronto Stock Exchange today:
BMO U.S. dividend: Provides investors exposure to a portfolio of 100 large-cap stocks diversified across a number of sectors, screened for dividend growth, yield and payout ratio. This strategy is available through three listings:
- Non-currency hedged CAD units – BMO U.S. Dividend ETF (ZDY)
- Non-currency hedged USD units – BMO U.S. Dividend ETF (ZDY.u)
- Hedged to Canadian dollar CAD units – BMO U.S. Dividend Hedged to CAD ETF (ZUD)
BMO low volatility U.S. equity: Provides investors exposure to the 100 large-cap stocks with the lowest beta relative to the S&P 500 Composite Index, placing a higher emphasis on stocks that are less sensitive to shifts in the market. This strategy is available through two listings:
- Non-currency hedged CAD units – BMO Low Volatility U.S. Equity ETF (ZLU)
- Non-currency hedged USD units – BMO Low Volatility U.S. Equity ETF (ZLU.u)
Read: ETFs fit the bill for fixed-income allocation
BMO mid-term U.S. IG corporate bond: The listings expect reduced sensitivity to a steepening yield curve by not holding long-term bonds. The U.S. investment grade bonds universe is more diversified than the Canadian corporate bond universe. This strategy can be purchased through three listings:
- Non-currency hedged CAD units – BMO Mid-Term U.S. IG Corporate Bond Index ETF (ZIC)
- Non-currency hedged USD units – BMO Mid-Term U.S. IG Corporate Bond Index ETF (ZIC.u)
- Hedged to Canadian dollar CAD units – BMO Mid-Term U.S. IG Corporate Bond Index Hedged to CAD ETF (ZMU)
BMO mid provincial bond index ETF: Invests in a range of debt securities with a term-to-maturity date between five and 10 years. Securities held in the index are issued or guaranteed by Canadian provincial governments and their agencies, as well as by government-sponsored agencies.
BMO long provincial bond index ETF: Invests in an assortment of debt securities with a term-to-maturity of more than 10 years. Securities held in the index are issued or guaranteed by Canadian provincial governments and their agencies, as well as by government-sponsored agencies.