BMO launches seven ETFs
BMO Asset Management has launched seven equity and fixed income exchange-traded funds designed to help investors achieve their objectives of income, growth and diversification.
"These new ETFs feature innovative approaches to fixed income investing, including new strategies and precise exposure. They also offer investors more international growth opportunities and include the first ETF in Canada that tracks a MSCI Quality Index," says Kevin Gopaul, chief investment officer and senior vice president, BMO Asset Management. "We're also adding to our unhedged suite of international ETFs to give investors more ways to access well-known market indices."
The new ETFs, which all trade on the Toronto Stock Exchange, are:
BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ): The listing will provide 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): The listing will offer non-currency hedged exposure to dividend-paying US-based equities of 30 large-cap stocks diversified across several different sectors. This ETF includes a covered call overlay which increases yield while reducing volatility.
BMO Equal Weight US Banks Index ETF (ZBK): This ETF will provide access to a portfolio of large-cap US banks by tracking the Dow Jones US 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 will offer access to a diversified portfolio of equities from developed markets (excluding North America) by tracking the MSCI EAFE Index - the most recognised benchmark for international equities. This ETF will complement the existing BMO MSCI EAFE Hedged to CAD Index ETF (ZDM).
BMO Discount Bond Index ETF (ZDB): The listing will provide 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): This ETF will provide investors with broad exposure to US investment grade corporate bonds based on tracking the Barclays US Investment Grade 1 to 5 Year Corporate Bond Capped Index CAD Hedged. The US 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 US high yield corporate bonds.
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