Suite of products includes index funds focused on disruptive innovation and clean energy, as well as new fixed-income strategy
As interest in thematic investment strategies accelerates following the global pandemic, BMO Asset Management has enhanced its catalogue of ETFs with 11 new offerings, including a suite of products that offer exposure to transformative trends.
“We are focusing on disruptive innovation, which is about looking at long-term mega trends that are poised to transform the economy,” said Kevin Gopaul, president, ETFs at BMO Global Asset Management. “These mega trends are top-down views that have proven to be the powerful market drivers that change the way we live, behave and interact with the world.”
The new ETFs include five first-in-Canada index products, which offer access to five MSCI Innovation Indexes:
- BMO MSCI Innovation Index ETF (ZINN) – focused generally on companies with high exposure to innovation in the autonomous technology & industrial sector, genomic technology, fintech, and next-generation internet;
- BMO MSCI Tech & Industrial Innovation Index ETF (ZAUT) – generally invests in companies with high exposure to business activities arising from innovation in areas such as industrial automation, manufacturing, transportation, energy usage and storage, and artificial intelligence;
- BMO MSCI Fintech Innovation Index ETF (ZFIN) – generally invests in companies with high exposure to activities in digital and mobile payments, blockchain technologies or peer-to-peer transactions, and digital platforms;
- BMO MSCI Genomic Innovation Index ETF (ZGEN) – invests generally in companies that are determined to have a high exposure to activities such as gene editing, agricultural biotechnology, molecular diagnostics, bioinformatics, and other genetics-related technologies; and
- BMO MSCI Next Gen Internet Innovation Index ETF (ZINT) – generally invests in companies with high exposure to business activities including cloud computing, the internet of things (IoT), mobile and digital payments, and e-commerce, among others.
Another new fund, the BMO Covered Call Technology ETF (ZWT), aims to generate income and provide long-term capital appreciation through exposure to a portfolio of technology and technology-related companies, while mitigating risk through the use of covered call options.
On the sustainable investing front, BMO has introduced the BMO Clean Energy Index ETF (ZCLN), which generally invests in clean energy production and clean energy equipment & technology companies as reflected in the S&P Global Clean Energy Index. Another new offering, the BMO MSCI USA ESG Leaders Index ETF (Hedged Units) (ESGY.F), offers additional choice to ESG-minded Canadian investors.
“BMO is excited to offer a comprehensive suite of products providing investors exposure to some of these mega trends, and other emerging themes,” Gopaul said.
The firm has also launched three series of a new strategy, the BMO Short Term US TIPS Index ETF (ZTIP/ ZTIP.F/ZTIP.U), which acts as an inflation hedge and provides exposure to U.S. Treasury Inflation Protected Securities.