Canadian investors can now gain exposure to unhedged US high yield bonds with BMO Asset Management's newest line up of ETFs.
The asset manager rolled out five new ETFs, which include BMO High Yield US Corporate Bond Index ETF, the first of its kind in Canada which gives investors another option to access U.S. high yield corporate bonds. This complements its hedged counterpart, the BMO High Yield US Corporate Bond Hedged to CAD Index ETF.
Another addition to the line-up is the BMO Shiller Select US Index ETF, which provides exposure to the Cyclically Adjusted Price Earnings (CAPE) methodology developed from the research of Professor Robert Shiller from Yale University.
"The Shiller Barclays CAPE US Single Stock Index tracks seasoned companies – what I call 'Old Standbys' – that also show good value by the CAPE ratio," Shiller said, noting that this offers a different approach to value investing.
More so, he noted that it was designed to identify stocks that are well-established and relatively forgotten, particularly those which have a long history of earnings but still remain underpriced in the market.
The three other ETFs rolled out are as follows:
- BMO MSCI Canada Value Index ETF offers investors factor-based access to Canadian companies with higher value characteristics relative to their peers.
- BMO MSCI EAFE Value Index ETF provides investors factor-based access to international companies with higher value characteristics relative to their peers.
- BMO MSCI USA Value Index ETF offers investors factor-based access to U.S. companies with higher value characteristics relative to their peers.
The newly-rolled out funds bring BMO's ETF count to 95, accounting a 31.6% share of the Canadian ETF market.
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