ETFs

BMO to exit European ETF industry


Consolidation looms large again with Canada’s BMO announcing it is to close down its 13 UCITS ETFs European range in January next year. The range reached assets of EUR608 million since entering the European market in 2015.

The largest ETFs in the range are the BMO Bloomberg Barclays 1-3 Year Global Corporate Bond, with assets over GBP140 million and a global high-yield bond fund.

Morningstar comments that one of the smallest funds to be closed is the BMO MSCI Europe ex-UK Income Leaders, with assets of just EUR1.7 million. The ETF has a four-star rating from Morningstar analysts, and the BMO MSCI UK Income Leaders – which is also due to be wound down – was favoured by Morningstar passive specialist Dimitar Boyadzhiev, who said the ETF: “squeezed more income from the index” than some of its rivals.

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