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BMO ETFs: New Product Alert
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bmo.com/etfs BMO EXCHANGE TRADED FUNDS

BMO ETFs Launches Innovative New ETFs

New ETFs for the Portfolio Construction Needs of Investors
March 27, 2013
This morning, BMO ETFs introduced new equity and fixed income based exchange traded funds (ETFs) that help investors address their portfolio construction needs. The ETFs include non-currency hedged and U.S. dollar options and allow investors more choice in accessing different asset classes and currency exposures. With the U.S. dollar offerings, BMO Asset Management Inc. is now the leading provider of U.S. dollar ETFs in Canada.

The equity ETFs are strategy based solutions focusing on U.S. equities. Building on the innovation of our existing Canadian equity products in the dividend and low volatility space, the new dividend and low volatility ETFs will follow a similar portfolio construction process.

The fixed income based BMO ETFs will round out our product offering in both the Canadian and U.S. bond space. There are now 19 fixed income BMO ETFs, allowing strategic investors to better adjust the risk/return characteristics of their portfolio and tactical investors to dynamically adjust their portfolio to address changing market conditions. See below for a description of the new ETFs.

Product Description:

  • BMO US Dividend ETF (ZDY/ZDY.u)
    BMO U.S. Dividend Hedged to CAD ETF (ZUD)

    The strategy of these ETFs is to provide investors with exposure to dividend-paying US equities. Stocks in the portfolio are screened for the growth, yield and payout ratio of their dividends. Each ETF invests in a portfolio of 100 large-cap stocks diversified across a number of different sectors. Investors may purchase this strategy by investing in non-currency hedged Canadian dollar units (ZDY), non-currency hedged US dollar units (ZDY.u) or Canadian dollar units that are hedged back to the Canadian dollar (ZUD). The management fee for each of these listed ETFs is 0.30%.
  • BMO Low Volatility U.S. Equity ETF (ZLU/ZLU.u)
    BMO Low Volatility US Equity ETF invests in a portfolio that consists of 100 large-cap stocks with low betas. Similar to our existing Canadian low volatility ETF, this portfolio utilizes an innovative beta-weighting methodology that places a higher emphasis on stocks that are less sensitive to market movements. Investors may purchase this strategy by investing in non-currency hedged Canadian dollar units (ZLU) or non-currency hedged US dollar units (ZLU.u). The management fee for each of these listed ETFs is 0.30%.
  • BMO Mid-Term U.S. IG Corporate Bond Index ETF (ZIC/ZIC.u)
    BMO Mid-Term U.S. IG Corporate Bond Index Hedged to CAD ETF (ZMU)

    Each of these strategies provides investors with exposure to a portfolio of U.S. investment grade corporate bonds. The ETF provides investors with similar exposure to the full-term U.S. investment grade universe, but is less sensitive to a steepening yield curve as it does not hold long-term bonds. The U.S. investment grade bond universe is more diversified than the Canadian corporate bond space and contains issues of well known, high quality companies. Investors may purchase this ETF by investing in non-currency hedged Canadian dollar units (ZIC), non-currency hedged US dollar units (ZIC.u) or Canadian dollar units that are hedged back to the Canadian dollar (ZMU). ZIC & ZIC.u currently seek to replicate the performance of Barclays U.S. Investment Grade 5-10 Year Corporate Bond Capped Index. ZMU currently seeks to replicate the performance Barclays US Investment Grade 5 to 10 Year Corporate Bond Capped Index CAD Hedged. The management fee for each of these listed ETFs is 0.25%.
  • BMO Mid Provincial Index Bond Index ETF (ZMP)
    The BMO Mid Provincial Bond Index ETF currently seeks to replicate the performance of the DEX Mid Term Provincial Bond Index TM, net of expenses. The ETF invests in debt securities issued or guaranteed by Canadian provincial governments and their agencies, as well as government sponsored agencies with a term to maturity between 5 and 10 years. This ETF has a competitive management fee of 0.25%.
  • BMO Long Provincial Bond Index ETF (ZPL)
    The BMO Long Provincial Bond Index ETF currently seeks to replicate the performance of the DEX Long Term Provincial Bond Index TM, net of expenses. The ETF invests in debt securities issued or guaranteed by Canadian provincial governments and their agencies, as well as government sponsored agencies with a term to maturity of more than 10 years. This ETF has a competitive management fee of 0.25%.

For additional information, please visit our website at www.bmo.com/etfs

For questions, please contact:

Investor Contact:
Client Services: 1-800-361-1392

Advisor Contacts:

Kevin Prins
Vice President, Ontario
kevin.prins@bmo.com

Daniel Stanley
Vice President, Ontario
daniel.stanley@bmo.com

Alain Desbiens
Vice President, Quebec & Atlantic
alain.desbiens@bmo.com

Mark Webster
Vice President, Western Canada
mark.webster@bmo.com

Disclaimer:
Information, opinions and statistical data contained in this report were obtained or derived from sources deemed to be reliable, but BMO Asset Management Inc. does not represent that any such information, opinion or statistical data is accurate or complete and they should not be relied upon as such. Particular investments and/or trading strategies should be evaluated relative to each individual's circumstances. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment.

BMO ETFs are managed and administered by BMO Asset Management Inc, an investment fund manager and portfolio 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 changes frequently and past performance may not be repeated.

Barclays Capital and Barclays Capital Inc. are trademarks of Barclays Capital and have been licensed for use in connection with listing and trading of ZIC, ZIC.u and ZMU on the Toronto Stock Exchange. ZIC, ZIC.u and ZMU are not sponsored by, endorsed sold or promoted by Barclays Capital and Barclays Capital makes no representation regarding the advisability of investing in them.

DEX Mid Term Provincial Bond Index TM and DEX Long Term Provincial Bond Index TM are trade-marks of TSX Inc. and have been licensed for use for certain purposes to BMO Asset Management Inc. by PC-Bond, a business unit of TSX Inc. ZMP and ZPL are not sponsored, endorsed, sold or promoted by PC-Bond, TSX Inc., its affiliates or third party data providers and they make no representation, warranty, or condition regarding the advisability of investing in the ETFs.

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