BMO Asset Management has announced the launch of three new ETFs and the introduction of four which begin trading on the TSX today (Feb. 15.)
The three risk-based asset allocation ETFs are designed to help investors complement their existing holdings using a disciplined, passive approach covering broad markets.
"We are always looking for ways to help investors build better portfolios," said Kevin Gopaul, Global Head of ETFs, BMO Global Asset Management. "These low-cost, market-exposure asset allocation ETFs provide access to our award-winning suite of ETFs in a new way."
The new funds are:
- BMO Conservative ETF (ZCON): targeting exposure of 60% fixed income and 40% equity
- BMO Balanced ETF (ZBAL): targeting exposure of 40% fixed income and 60% equity
- BMO Growth ETF (ZGRO): targeting exposure as 20% fixed income and 80% equity
"The new asset allocation ETFs provide diversified exposures with quarterly rebalancing, which help investors stay in the market as a buy-and-hold strategy,” added Gopaul.
Four begin trading on TSX
BMO Asset Management is also introducing four ETFs which begin trading on the TSX today (Feb. 15) and for which the offering has closed.
They are covering areas including covered call U.S. banks, ultra-short term U.S. bonds, U.S. health care and NASDAQ 100 equity:
- BMO Ultra Short-Term US Bond ETF (ZUS.U, ZUS.V): This ETF provides investors with a conservative approach to U.S. dollar investing through U.S.-denominated corporate bonds with less than a year to maturity. The ETF can act either as a yield enhancement compared to cash balances, or for a defensive rotation within a fixed income portfolio.
- BMO Covered Call US Banks ETF (ZWK): This unhedged ETF is designed to provide investors effective yield enhancement to U.S. bank exposure. It is part of BMO's comprehensive suite of covered call ETFs, as well as a complement to BMO Equal Weight US Banks Index ETF (ZBK).
- BMO NASDAQ 100 Equity Index ETF (ZNQ): This unhedged ETF provides investors access to top 100 NASDAQ listed non-financial companies. It can be used as a currency management tool as a complement to BMO NASDAQ 100 Equity Hedged to CAD ETF (ZQQ).
- BMO Equal Weight US Health Care Index ETF (ZHU): This unhedged ETF is designed to provide investors access to health care in the U.S., a sector which is under-represented in Canada. It can also be used as a currency management tool as a complement to BMO Equal Weight US Health Care Hedged to CAD Index ETF (ZUH).
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