- BMO Asset Management Inc.'s new ZBI Exchange Traded Fund offers access to yield enhancing segments of the bank funding market, including Limited Recourse Capital Notes (LRCNs) and preferred shares amid rising inflation and interest rates.
TORONTO, Feb. 10, 2022 /CNW/ - BMO Asset Management Inc. (BMO AM) today launched the BMO Canadian Bank Income Index ETF, expanding its suite of fixed income ETFs to include a unique solution investing in non-traditional securities such as preferred shares and LRCNs while remaining anchored with traditional Canadian bank fixed income.
"Amid an environment of rising inflation and interest rates, investors are looking for innovative solutions that behave differently than traditional fixed income products," said Mark Raes, Head of Product (Canada), BMO Global Asset Management. "BMO's new ZBI ETF gives investors access to yield enhancing segments of the bank funding market – including LRCNs and preferred shares combined with holdings of Bank bonds – resulting in shorter duration and higher yield than the aggregate fixed income market."
- BMO Canadian Bank Income Index ETF (ZBI): This ETF seeks to replicate the performance of Solactive Canadian Bank Income Index, a portfolio of traditional and non-traditional Canadian bank debt instruments including LRCNs and preferred shares.
Today's launch of ZBI, builds on BMO Asset Management Inc.'s recent addition of 10 new ETF listings that further expanded its suite of ESG ETFs to include a climate-focused solution, continued income innovation, and a broadened asset allocation ETF suite.
Further information about BMO ETFs can be found at www.bmo.com/etfs.
The viewpoints expressed by the Portfolio Manager represents their assessment of the markets at the time of publication. Those views are subject to change without notice at any time without any kind of notice. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. Past performance is no guarantee of future results. This communication is intended for informational purposes only.
Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus of the BMO ETFs 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 BMO ETF's 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.
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.
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About BMO Exchange Traded Funds (ETFs)
BMO Exchange Traded Funds has been a leading ETF provider in Canada for more than 11 years, with over 100 strategies, over 25 per cent market share in Canada1, and $80.6 billion in assets under management. 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 active mutual funds.
1Morningstar, December 2021
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 $988 billion as of October 31, 2021, 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