News Releases
TORONTO, Feb. 11, 2020 /CNW/ - BMO Asset Management Inc. today launched new exchange traded funds (ETFs), including the first mortgage backed security (MBS) ETF in Canada.
"Building off the success of our fixed income suite, we now offer more solutions for investors to precisely position their portfolios within a certain credit range," said Mark Raes, Head of Product, BMO Global Asset Management. "Additionally, we have launched Canada's first MBS ETF, which provides a unique exposure to a segment of the MBS market fully guaranteed by the Canada Mortgage and Housing Corporation (CMHC). These listings further demonstrate our commitment to the bond market, where ETFs bring added liquidity and trading efficiency for fixed income positioning."
BMO BBB Corporate Bond Index ETF (ZBBB) – This ETF invests in one to 10 year BBB rated corporate bonds, allowing investors to segment credit exposure while providing a yield pickup.
BMO High Quality Corporate Bond Index ETF (ZQB) – This ETF invests in one to 10 year A and above rated corporate bonds providing exposure to higher quality Canadian credit, allowing investors to boost their portfolio credit quality.
BMO Canadian MBS Index ETF (ZMBS) – This ETF invests in pools of mortgage backed securities insured under the Canadian National Housing Act. The pools each have a term to maturity greater than one year and a minimum amount outstanding of $100 million.
Indexes provided by FTSE Russell will underlie these fixed income BMO ETF offerings.
"We are extremely excited to expand on our relationship with BMO in Canada by providing FTSE Russell fixed income indexes to underlie three of the five new ETFs in BMO's recently expanded offering," said Paul Bowes, Head of FTSE Russell Canada. "FTSE Russell Canada is focused on helping Canadian investors pursue their financial objectives through high quality equity and fixed income indexes, market data and analytics."
BMO S&P US Mid Cap Index ETF (ZMID, ZMID.U, ZMID.F) and BMO S&P US Small Cap Index ETF (ZSML, ZSML.U, ZSML.F) – These ETFs provide small and mid-capitalization exposure to U.S. equities, complementing the existing BMO S&P 500 Index ETF (ZSP, ZSP.U, ZUE). These growth-oriented ETFs provide exposure to maturing companies with revenues concentrated from the U.S. economy.
"We're responding to an increase in demand from asset allocators for products offering different market capitalization ranges," said Mr. Raes. "These ETFs provide exposure to U.S. focused companies and are well represented across sectors and industries."
The offering of all of the new ETFs has closed, and they will begin trading on the TSX today.
Further information about BMO ETFs can be found at www.bmo.com/etfs.
S&P®, is a registered trademarks of Standard & Poor's Financial Services LLC ("S&P"). This trademark has been licensed for use by S&P Dow Jones Indices LLC and sublicensed to BMO Asset Management Inc. in connection with ZMID, ZMID.U, ZMID.F and ZSML, ZSML.U, ZSML.F. ZMID, ZMID.U, ZMID.F and ZSML, ZSML.U, ZSML.F is not sponsored, endorsed, sold or promoted by S&P Dow Jones LLC, S&P, or their respective affiliates and S&P Dow Jones Indices LLC, S&P, and their affiliates make no representation regarding the advisability of trading or investing in such BMO ETF(s).
The FTSE BMO ETFs are not in any way sponsored, endorsed, sold or promoted by, FTSE TMX Debt Capital Markets Inc. ("FTDCM"), Frank Russell Company ("Russell") or TSX INC. ("TSX") (together the "Licensor Parties"). The Licensor Parties make no claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the FTSE TMX Index(es) or the Russell Index(es), (ii) and/or the figure at which the said FTSE TMX Index(es) or Russell Index(es) stands at any particular time on any particular day or otherwise, or (iii) the suitability of the FTSE TMX Index(es) and/or the Russell Index(es) for the purpose to which it is being put in connection with the ETF mentioned herein. The FTSE TMX Index(es) is/are compiled and calculated by and all copyright in the Index values and constituent list vests in FTDCM. The Russell Index(es) is/are calculated by Russell or its agent. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any person for any error in the Index and the Licensor Parties shall not be under any obligation to advise any person of any error therein. "TMX" is a trade mark of TSX Inc. and is used under license."Russell®" is a trademark of Frank Russell Company.
Commissions, management fees and expenses (if any) all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus before investing. Exchange traded funds 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 and ETF series 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.
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.
®/™Registered trade-marks/trade-mark of Bank of Montreal, used under licence.
About BMO Exchange Traded Funds (ETFs)
Established in May 2009, BMO Financial Group's ETF business is a leading ETF provider in Canada. BMO ETFs provide Canadian investors with broader choices and greater access to an innovative portfolio of investment products.
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 $852 billion as of October 31, 2019, 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
