Big Six banks expand investment offerings

BMO launches new ETF while CIBC expands lineup of innovative instruments

Big Six banks expand investment offerings

Two of Canada’s big banks have made new additions to their product shelves.

BMO Investments, Inc., which manages BMO’s mutual funds, has announced the launch of ETF series units for the BMO Money Market Fund. Trading on the TSX under the ticker ZMMK, it aims for long-term capital preservation by investing in a portfolio of high-quality money market instruments from Canadian government and corporate issuers.

The strategy focuses on high-quality money market instruments that mature in less than 365 days, with an average term of 90 days or less to reset date and 180 days to maturity date.

“ZMMK provides a solution for investors looking for a liquidity sleeve, or a place to hold their cash as they assess the market for other investments,” Mark Raes, head of Product at BMO Global Asset Management, said in a statement.

Meanwhile, CIBC has again expanded its lineup of Canadian Depositary Receipts (CDRs), which offer an affordable way to invest in some of the world’s largest companies with a built-in notional currency hedge, with eight new listings on the NEO Exchange.

The new CDRs include:

  • Advanced Micro Devices Canadian Depositary Receipts (CAD Hedged) - AMD
  • Berkshire Hathaway Canadian Depositary Receipts (CAD Hedged) – BRK (underlying shares Berkshire Hathaway Inc. Class B Common Stock (NYSE: BRK.B))
  • Costco Canadian Depositary Receipts (CAD Hedged) - COST
  • Canadian Depositary Receipts (CAD Hedged) - CRM
  • IBM Canadian Depositary Receipts (CAD Hedged) - IBM
  • JPMorgan Canadian Depositary Receipts (CAD Hedged) - JPM
  • Mastercard Canadian Depositary Receipts (CAD Hedged) - MA
  • Pfizer Canadian Depositary Receipts (CAD Hedged) - PFE

They join 10 other CDRs that were launched on NEO in July and October. According to NEO, the average number of client trades in CDRs grew from around 700 per day in September to roughly 5,500 since the start of November. The CDRs on the exchange have also continued to track their underlying stocks precisely even during highly volatile periods.

“We are pleased with the reception we’ve seen so far for CDRs with Canadian investors. It’s clear this meets a need in the market,” said Elliott Scherer, managing director and head of Sales, Wealth Solutions Group, CIBC Capital Markets. “This expansion of our CDR offering provides greater opportunity for investors to diversify their portfolio without being exposed to currency risk at a fraction of the price per share.”