News Releases
- New Buffer ETF offers downside protection for investors
TORONTO, April 1, 2024 /CNW/ - BMO Asset Management Inc. (BMOAM Inc.), the manager of the BMO ETFs, today announced the launch of BMO US Equity Buffer Hedged to CAD ETF – April.
BMO US Equity Buffer Hedged to CAD ETF – April (Cboe CA: ZAPR) has closed its initial offering of exchange traded units and today is listed and trading on Cboe Canada Inc.
BMO US Equity Buffer Hedged to CAD ETF – April (Cboe CA: ZAPR) seeks to provide unitholders with income and appreciation (before fees, expenses and taxes) that matches to the extent possible the return of an index designed to measure the large-cap segment of the US equity market (the "Reference Index") up to a cap (before fees, expenses and taxes), while providing a buffer against the first 15 per cent (before fees, expenses and taxes) of a decrease in the market price of the Reference Index, over a period of approximately one year from the first business day of April of each year to on or about the last business day of March of the following year, referred to as the Target Outcome Period.
About Structured Outcome ETFs
BMO US Equity Buffer Hedged to CAD ETF – April is the newest addition to BMO ETFs' Structured Outcome ETFs. Collectively, BMO Canadian Banks Accelerator ETF, BMO US Equity Accelerator Hedged to CAD ETF, BMO US Equity Buffer Hedged to CAD ETF – January, BMO US Equity Buffer Hedged to CAD ETF – April, and BMO US Equity Buffer Hedged to CAD ETF – October are referred to as the "Structured Outcome ETFs". The Structured Outcome ETFs aim to provide investors with a return over a specified target outcome period (each, a "Target Outcome Period").
An investor that purchases units of a Structured Outcome ETF other than on the first day of a Target Outcome Period and/or redeems or sells units of a Structured Outcome ETF prior to the end of a Target Outcome Period may experience results that are very different from the target outcomes sought by such Structured Outcome ETF for that Target Outcome Period. To achieve the intended target outcomes sought by a Structured Outcome ETF for a Target Outcome Period, an investor must hold units of the Structured Outcome ETF for that entire Target Outcome Period.
Please refer to the Structured Outcome ETFs' website (https://www.bmogam.com/ca-en/products/structured-outcomes/) for important information about the Structured Outcome ETFs' Target Outcome Period start and end dates and the applicable cap and buffer.
Further information can be found at BMO ETF Centre.
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.
®/™Registered trademarks/trademark of Bank of Montreal, used under licence.
About BMO Exchange Traded Funds (ETFs)
BMO Exchange Traded Funds has been an ETF provider in Canada for more than 12 years, with over 100 strategies, over 23 per cent market share in Canada1, and $97.5 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 2023
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.3 trillion as of October 31, 2023. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to over 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.
SOURCE BMO Financial Group
