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BMO Asset Management, one of Canada’s leading providers of exchange-traded funds (ETFs), has introduced seven new ETFs on the Toronto Stock Exchange.
The new funds – a mix of equity and fixed income products – are designed to help investors achieve their objectives of income, growth and diversification.
Kevin Gopaul, Chief Investment Officer and Senior Vice President, BMO Asset Management, said: “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. 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 are:
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. The 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 US-based equities of 30 large-cap stocks diversified across several different sectors. The ETF includes a covered call overlay which increases yield while reducing volatility.
BMO Equal Weight US Banks Index ETF (ZBK)
Provides 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 recognized benchmark for international equities. The ETF will complement the existing BMO MSCI EAFE Hedged to CAD Index ETF (ZDM).
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 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)
This ETF 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.
With these additions, BMO’s ETF line-up now stands at 58 funds and includes multiple industry firsts. Since being introduced in 2009, the business has grown to more than $12 billion in assets under management (AUM).
Nationally, the assets under management in the Canadian ETF industry stand at $63.1 billion – up $5 billion over last year.