- Also introduces four ETFs covering areas including covered call U.S. banks, ultra-short term U.S. bonds, U.S. health care and NASDAQ 100 equity
TORONTO, Feb. 15, 2019 /CNW/ - BMO Asset Management Inc. today announced the launch of three risk-based asset allocation Exchange Traded Funds (ETFs).
The asset allocation ETFs are designed to help investors complement their existing holdings using a disciplined, passive approach covering broad markets:
- BMO Conservative ETF (ZCON): targeting exposure of 60% fixed income and 40% equity
- BMO Balanced ETF (ZBAL): targeting exposure of 40% fixed income and 60% equity
- BMO Growth ETF (ZGRO): targeting exposure as 20% fixed income and 80% equity
"We are always looking for ways to help investors build better portfolios," said Kevin Gopaul, Global Head of ETFs, BMO Global Asset Management. "These low-cost, market-exposure asset allocation ETFs provide access to our award-winning suite of ETFs in a new way."
He added, "The new asset allocation ETFs provide diversified exposures with quarterly rebalancing, which help investors stay in the market as a buy-and-hold strategy."
Additionally, BMO Asset Management Inc. is introducing four ETFs. The offering of all of the new ETFs has closed, and they will begin trading on the Toronto Stock Exchange today.
BMO Ultra Short-Term US Bond ETF (ZUS.U, ZUS.V): This ETF provides investors with a conservative approach to U.S. dollar investing through U.S.-denominated corporate bonds with less than a year to maturity. The ETF can act either as a yield enhancement compared to cash balances, or for a defensive rotation within a fixed income portfolio.
BMO Covered Call US Banks ETF (ZWK): This unhedged ETF is designed to provide investors effective yield enhancement to U.S. bank exposure. It is part of BMO's comprehensive suite of covered call ETFs, as well as a complement to BMO Equal Weight US Banks Index ETF (ZBK).
BMO NASDAQ 100 Equity Index ETF (ZNQ): This unhedged ETF provides investors access to top 100 NASDAQ listed non-financial companies. It can be used as a currency management tool as a complement to BMO NASDAQ 100 Equity Hedged to CAD ETF (ZQQ).
BMO Equal Weight US Health Care Index ETF (ZHU): This unhedged ETF is designed to provide investors access to health care in the U.S., a sector which is under-represented in Canada. It can also be used as a currency management tool as a complement to BMO Equal Weight US Health Care Hedged to CAD Index ETF (ZUH).
Further information about BMO ETFs can be found at www.bmo.com/etfs.
BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.
Commissions, management fees and expenses all may be associated with investments in BMO ETFs. Please read the ETF facts or prospectus of the relevant BMO ETF before investing. BMO ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.
NASDAQ®, and NASDAQ-100 Index® Hedged to CAD, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by BMO Asset Management Inc. BMO Nasdaq 100 Equity Hedged to CAD Index ETF has not been passed on by the Corporations as to their legality or suitability and is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO the BMO Nasdaq 100 Equity Hedged to CAD Index ETF.
About BMO ETFs' 10 Years of Leadership
Celebrating its tenth year, BMO Financial Group's ETF business is a leading ETF provider in Canada. Today it offers 82 mandates and has a market share of 31 per cent in Canada. BMO ETFs are designed to stay ahead of market trends and provide compelling solutions to help advisors and investors. This includes a comprehensive suite of ETFs developed in Canada for Canadians, such as cost effective core equity ETFs following market leading indexes, and a broad range of fixed income ETFs; solution-based ETFs responding to client demand; and innovation with smart beta ETFs, as well as combining active and passive investing with ETF series of award-winning active mutual funds.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in North America. With total assets of $774 billion as of October 31, 2018, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group