|By Marketwired .||
|February 14, 2014 07:00 AM EST||
TORONTO, ONTARIO -- (Marketwired) -- 02/14/14 -- BMO Asset Management Inc. (BMO AM) today introduced seven Exchange Traded Funds (ETFs). The new equity and fixed income based ETFs will help investors achieve their objectives of income, growth and diversification.
"These new ETFs feature innovative approaches to fixed income investing, including new strategies and precise exposure. They also offer investors more international growth opportunities and include the first ETF in Canada that tracks a MSCI Quality Index," said Kevin Gopaul, Chief Investment Officer and Senior Vice President, BMO Asset Management Inc. "We're also adding to our unhedged suite of international ETFs to give investors more ways to access well-known market indices."
Mr. Gopaul added, "We look forward to continuing to add to our ETF line-up with a focus on developing market leading, cost-effective offerings that address key investor needs."
With these additions, BMO AM's ETF line-up now stands at 58 funds and includes multiple industry firsts. Since being introduced in 2009, the business has grown to more than $12 billion in assets under management (AUM). According to a recent report by BMO Global Asset Management, the Canadian ETF industry continued to grow in 2013 and currently stands at $63.1 billion in AUM - up $5 billion over last year.
The offering of the following new ETFs has closed, and they will begin trading on the Toronto Stock Exchange today:
BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ): The listing will provide investors with exposure to a diversified portfolio of high quality European equities by tracking the MSCI Europe Quality 100% Hedged to CAD Index, which screens large-and mid-cap stocks for high return on equity, stable earnings growth and low financial leverage. This ETF will largely mitigate volatility between the European currencies and Canadian dollar by using a currency hedge.
BMO US High Dividend Covered Call ETF (ZWH): The listing will offer non-currency hedged exposure to dividend-paying U.S.-based equities of 30 large-cap stocks diversified across several different sectors. This ETF includes a covered call overlay which increases yield while reducing volatility.
BMO Equal Weight US Banks Index ETF (ZBK): This ETF will provide access to a portfolio of large-cap U.S. banks by tracking the Dow Jones U.S. Large-Cap Banks Equal Weight Total Stock Market Index. The listing is the non-currency hedged complement to the existing BMO Equal Weight US Banks Hedged to CAD Index ETF (ZUB).
BMO MSCI EAFE Index ETF (ZEA): This non-currency hedged ETF will offer access to a diversified portfolio of equities from developed markets (excluding North America) by tracking the MSCI EAFE Index - the most recognized benchmark for international equities. This ETF will complement the existing BMO MSCI EAFE Hedged to CAD Index ETF (ZDM).
BMO Discount Bond Index ETF (ZDB): The listing will provide investors with unique exposure to the broad based Canadian income universe through the FTSE TMX Canada Universe Discount Bond Index and will only hold investment grade issues trading near or below par.
BMO Short-Term US IG Corporate Bond Hedged to CAD Index ETF (ZSU): This ETF will provide investors with broad exposure to U.S. investment grade corporate bonds based on tracking the Barclays US Investment Grade 1 to 5 Year Corporate Bond Capped Index CAD Hedged. The U.S. corporate bond universe is more diversified by sectors and issuers than the Canadian space. The listing will focus on the less interest rate sensitive short-end of the yield curve and will complement the existing BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU).
BMO Floating Rate High Yield ETF (ZFH): The listing will invest in Canadian Treasury-bills and sell protection to gain exposure to the credit spread to a diversified transparent portfolio of U.S. high yield corporate bonds.
Further information about BMO ETFs can be found at www.bmo.com/etfs.
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(i)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.
Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. These and other associated trademarks and/or service marks have been licensed for use by BMO Asset Management Inc. The index underlying BMO Equal Weight US Banks Index ETF is a product of S&P Dow Jones Indices LLC and has been licensed for use by BMO Asset Management Inc. None of the BMO ETFs are sponsored, endorsed, sold or promoted by any of its aforementioned trademark owners and the related index providers 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.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI Inc., and MSCI Inc. bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus of each exchange traded fund contains a more detailed description of the limited relationship that MSCI Inc. has with BMO Asset Management Inc. and any related exchange traded fund.
BMO Discount Bond Index ETF is not in any way sponsored, endorsed, sold or promoted by, FTSE TMX Debt Capital Markets Inc. ("FTDCM"), FTSE International Limited ("FTSE"), the London Stock Exchange Group companies (the "Exchange") or TSX INC. ("TSX" and together with FTDCM, FTSE and the Exchange, the "Licensor Parties"). The Licensor Parties make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE TMX Canada Universe Discount Bond Index ("the Index") and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTDCM and all copyright in the Index values and constituent lists vests in FTDCM. 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 licence. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used by FTDCM under licence.
Barclays US Investment Grade 1 to 5 Year Corporate Bond Capped Index CAD Hedged is a trademark of Barclays Capital Inc. and has been licensed for use in connection with the listing and trading of ZSU on the Toronto Stock Exchange. ZSU is not sponsored by, endorsed, sold or promoted by Barclays Capital Inc. and Barclays Capital Inc. makes no representation regarding the advisability of investing in ZSU.
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 58 funds and includes multiple 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 $537 billion as at October 31, 2013, and more than 45,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.