TORONTO, ONTARIO--(Marketwire - March 27, 2013) - BMO Asset Management Inc. (BMO AM) today introduced seven Exchange Traded Funds (ETFs). The new equity ETFs and new fixed income ETFs will allow investors to adjust the risk/return characteristics of their portfolio, as well as adjust their portfolio to address changing market conditions.
"These additions to our ETF lineup build on our innovative existing ETFs and can help investors construct their portfolios more effectively," said 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 they access different asset classes."
Mr. Gopaul noted that with the U.S. dollar offerings, BMO AM is now a leading provider of ETFs listed in U.S. dollars in Canada. Since its inception in June 2009, BMO AM's ETF business has grown to 55 ETFs, covering a number of diverse asset classes, sectors and regions, and offer many benefits to investors.
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 per cent from 2011. Canada had its largest ever annual inflows in 2012, at $12 billion. According to Mr. Gopaul, 2013 is shaping up to be another banner year for Canadian ETFs.
The offering of the following new ETFs has closed and they will begin trading on the Toronto Stock Exchange today:
BMO U.S. Dividend: The listings provide 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: The listings provide 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)
BMO Mid-Term U.S. IG Corporate Bond: The listings are expected to have 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 (ZMP): This 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 (ZPL): This 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.
Further information about BMO ETFs can be found at www.bmo.com/etfs.
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*BMO ETFs are managed and administered by BMO Asset Management Inc., a portfolio manager and investment fund manager and separate legal entity from Bank of Montreal.
Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
"S & P® 500", is a trade-mark of S&P Opco. This and other associated trademarks and/or service marks have been licensed for use by BMO Asset Management Inc. None of the BMO ETFs are sponsored, endorsed, sold or promoted by the aforementioned trademark owner and the related index provider, or their respective affiliates or their third party licensors, and these entities make no representation, warranty or condition regarding the advisability of buying, selling or holding units in the BMO ETFs.
About BMO Exchange Traded Funds (ETFs)
Established in June 2009, BMO Financial Group's ETF business is a leading ETF provider in Canada. Since its inception, the lineup of BMO ETFs has grown to 55 funds and includes several industry firsts. BMO ETFs provide Canadian investors with broader choices and greater access to an innovative portfolio of investment products.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at January 31, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
- Exchange Traded Funds
Amanda Robinson, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver