- New energy and health care covered call ETFs address growing
investor demand for higher yielding sector-based solutions while
additions to fixed income shelf and global agriculture help
investors manage inflation concerns
TORONTO, Jan. 26,
2023 /CNW/ - BMO Asset Management Inc. (BMOAM Inc.),
the manager of the BMO ETFs, today announced the launch of five new
BMO ETFs and a new class of unit of BMO Growth ETF (TSX:
ZGRO.T).
The new BMO ETFs and ZGRO.T have closed their initial offering
of units and will begin trading today on the Toronto Stock
Exchange.
"We're excited to introduce new ETF strategies to help investors
make progress and build better portfolios," said Mark Raes, Head of Product, BMO Global Asset
Management. "Our new energy and health care covered call ETFs
address growing investor demand for higher yielding sector-based
solutions while additions to our fixed income shelf and a new
global agriculture ETF help investors navigate inflation and rising
interest rates. Continuing our offering innovation with ZGRO.T
delivers convenient cashflow to investors, including those in
retirement years."
- BMO Covered Call Energy ETF (TSX: ZWEN) seeks to provide
exposure to the performance of a portfolio of energy and energy
related companies, which may include clean energy (i.e., renewable
energy) companies, to generate income and to provide long-term
capital appreciation while mitigating downside risk through the use
of covered call options.
- BMO Covered Call Health Care ETF (TSX: ZWHC) seeks to
provide exposure to the performance of a portfolio of health care
and health care related companies to generate income and to provide
long-term capital appreciation, while mitigating downside risk
through the use of covered call options.
- BMO Global Agriculture ETF (TSX: ZEAT) seeks to provide
exposure to the performance of a portfolio of global agriculture
and agriculture related companies to provide long-term capital
appreciation.
- BMO US Aggregate Bond Index ETF (TSX: ZUAG, ZUAG.F
ZUAG.U) seeks to replicate, to the extent possible, the
performance of a U.S. aggregate bond index, net of expenses.
Currently, this BMO ETF replicates the Bloomberg US Aggregate Bond
Index. In respect of the Hedged Units, BMO US Aggregate Bond Index
ETF will also invest in or use derivative instruments to seek to
hedge U.S. currency exposure.
- BMO US TIPS Index ETF (TSX: TIPS, TIPS.F, TIPS.U) seeks
to replicate, to the extent possible, the performance of a U.S.
government inflation-linked bond index, net of expenses. Currently,
this BMO ETF replicates the Bloomberg US Treasury Inflation-Linked
Bond Index (Series-L). In respect of the Hedged Units, the BMO US
TIPS Index ETF will also invest in or use derivative instruments to
seek to hedge U.S. currency exposure.
- BMO Growth ETF (TSX: ZGRO.T) is launching a new class of
unit, Fixed Percentage Distribution Units (generally referred to as
T6 units), which has an annual distribution rate of 6 per cent,
paid monthly. Cash distributions may be comprised of net income,
net realized capital gains and/or a return of capital.
New BMO
ETF
|
Class of
Units
|
Ticker Symbol
(TSX)
|
BMO Covered Call Energy
ETF
|
CAD Units
|
ZWEN
|
BMO Covered Call Health
Care ETF
|
CAD Units
|
ZWHC
|
BMO Global Agriculture
ETF
|
CAD Units
|
ZEAT
|
BMO US Aggregate Bond
Index ETF
|
CAD Units
|
ZUAG
|
Hedged Units
|
ZUAG.F
|
USD Units
|
ZUAG.U
|
BMO US TIPS Index
ETF
|
CAD Units
|
TIPS
|
Hedged Units
|
TIPS.F
|
USD Units
|
TIPS.U
|
Existing BMO
ETF
|
New Class of
Unit
|
Ticker Symbol
(TSX)
|
BMO Growth
ETF
|
Fixed Percentage
Distribution Units (generally referred to as T6 units)
|
ZGRO.T
|
Further information can be found at BMO ETF Centre.
"BLOOMBERG®" and each Bloomberg Index are service marks of
Bloomberg Finance L.P. and its affiliates, including Bloomberg
Index Services Limited ("BISL"), the administrator of the Bloomberg
Indices referred to herein (collectively, "Bloomberg") and have
been licensed for use for certain purposes by BMO Asset Management
Inc. (the "Licensee"). Bloomberg is not affiliated with the
Licensee, and Bloomberg does not approve, endorse, review, or
recommend BMO US Aggregate Bond Index ETF or BMO US TIPS Index ETF.
Bloomberg does not guarantee the timeliness, accuracy, or
completeness of any data or information relating to these BMO
ETFs.
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.
Distributions are not guaranteed and may fluctuate. Distribution
rates may change without notice (up or down) depending on market
conditions. The payment of distributions should not be confused
with an investment fund's performance, rate of return or yield. If
distributions paid by an investment fund are greater than the
performance of the fund, your original investment will shrink.
Distributions paid as a result of capital gains realized by an
investment fund, and income and dividends earned by an investment
fund, are taxable in your hands in the year they are paid. Your
adjusted cost base will be reduced by the amount of any returns of
capital. If your adjusted cost base goes below zero, you will have
to pay capital gains tax on the amount below zero. Please refer to
the distribution policy for BMO ETF set out in the prospectus.
Cash distributions, if any, on units of a BMO ETF (other than
accumulating units or units subject to a distribution reinvestment
plan) are expected to be paid primarily out of dividends or
distributions, and other income or gains, received by the BMO ETF
less the expenses of the BMO ETF, but may also consist of
non-taxable amounts including returns of capital, which may be paid
in the manager's sole discretion. To the extent that the expenses
of a BMO ETF exceed the income generated by such BMO ETF in any
given month, quarter or year, as the case may be, it is not
expected that a monthly, quarterly, or annual distribution will be
paid. Certain BMO ETFs have adopted a distribution reinvestment
plan, which provides that a unitholder may elect to automatically
reinvest all cash distributions paid on units held by that
unitholder in additional units of the applicable BMO ETF in
accordance with the terms of the distribution reinvestment plan.
For further information, see Distribution Policy in the BMO ETFs'
prospectus.
BMO Global Asset Management is a brand name under which BMO
Asset Management Inc. and BMO Investments Inc. operate.
®/™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 25 per cent market share in Canada1, and $87.7 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.
1 Morningstar, December
2022
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 $1.14 trillion as of
October 31, 2022, 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 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