BMO ETFs Introduces Four New ETFs
November 20, 2012
Recent Developments:
This morning, BMO ETFs introduced four new exchange traded funds (ETFs) that address the needs of investors in today's market environment. The four new ETFs provide exposure to a range of areas including broad based U.S. equities, risk-controlled equity sectors, and a laddered Canadian preferred share portfolio. The addition of the four new listings brings BMO ETFs' product suite to 48 ETFs, spanning across various asset classes, regions, sectors and investment solutions. Details of the four new ETFs can be found below.
- BMO S&P/TSX Laddered Preferred Share Index ETF (ZPR) The BMO S&P/TSX Laddered Preferred Share Index ETF (ZPR) is an innovative solution that provides investors with exposure to the Canadian preferred share market. In order to better protect against rising interest rates, ZPR will hold only rate reset preferred shares. This excludes more interest rate sensitive perpetual issues which are approximately 35% of the preferred share market. In addition, to further mitigate the risk of rising interest rates, ZPR will use a laddered structure, whereby equal portions of the portfolio will reset each calendar year to reflect the current interest rate environment. The BMO S&P/TSX Laddered Preferred Share Index ETF (ZPR) is a diversified portfolio of close to 100 issues and will have a competitive management fee of 0.45%. Read Understanding Preferred Shares for more information on preferred shares.
- BMO S&P 500 Index ETF (ZSP) in Canadian Dollar UnitsBMO S&P 500 Index ETF (ZSP.u) in US Dollars UnitsThe BMO S&P 500 Index ETF (ZSP) is a solution for those investors looking for broad based U.S. equity exposure without a currency hedge. ZSP is registered as a Canadian mutual fund trust and therefore avoids U.S. estate taxes. The BMO S&P 500 Index ETF will also be available in a U.S. dollar version trading under the ticker ZSP.U. Similar to our existing BMO S&P 500 Hedged to CAD Index ETF (ZUE), both ZSP and ZSP.U will have a management fee of 0.15%.
- BMO S&P/TSX Equal Weight Industrials Index ETF (ZIN) The BMO S&P/TSX Equal Weight Industrials Index ETF (ZIN) will be the first ETF to provide investors with exposure to the Canadian industrial sector. The industrial sector includes companies involved in construction and manufacturing, an area where demand tends to grow in the early stages of an economic recovery. Currently, ZIN contains 18 different companies involved in businesses such as rail transportation, airplanes and engineering. Company specific risk in ZIN is mitigated by utilizing an equal weighting methodology where each of the holdings will be rebalanced to an equal weight semi-annually. The BMO S&P/TSX Equal Weight Industrials Index ETF (ZIN) will have a competitive management fee of 0.55%.
- BMO S&P/TSX Equal Weight Global Gold Index ETF (ZGD) The BMO S&P/TSX Equal Weight Global Gold Index ETF (ZGD) will provide investors with exposure to large- and mid-cap global gold companies. This ETF applies an equal weighting methodology to the gold sector, to reduce the over-concentration risk in the largest companies. Similar to our other equal weight ETFs, ZGD will be rebalanced and reconstituted on a semi-annual basis. Currently, ZGD holds 36 companies involved in various parts of the gold industry including, producers, miners and exploration companies. The BMO S&P/TSX Equal Weight Global Gold Index ETF (ZGD) will have a competitive management fee of 0.55%.
For additional information, please visit our website at www.bmo.com/etfs
For questions, please contact:
Investor Contact:
Client Services: 1-800-361-1392
Advisor Contacts:
Kevin Prins
Vice President, Ontario
kevin.prins@bmoguardian.com
Daniel Stanley
Vice President, Ontario
daniel.stanley@bmoguardian.com
Alain Desbiens
Vice President, Quebec & Atlantic
alain.desbiens@bmo.com
Mark Webster
Vice President, Western Canada
mark.webster@bmo.com
Disclaimer:
Information, opinions and statistical data contained in this report were obtained or derived from sources deemed to be reliable, but BMO Asset Management Inc. does not represent that any such information, opinion or statistical data is accurate or complete and they should not be relied upon as such. Particular investments and/or trading strategies should be evaluated relative to each individual's circumstances. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment.
BMO ETFs are managed and administered by BMO Asset Management Inc, an investment fund and portfolio manager and separate legal entity from the Bank of Montreal. Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the prospectus before investing. The indicated rates of return are the historical annual compound total returns including changes in prices and reinvestment of all distributions and do not take into account commission charges or income taxes payable by any unit holder that would have reduced returns. The exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
"S&P®" and "S&P 500®" are trade-marks of Standard and Poor's Financial Services LLC and "TSX" is a trade-mark of TSX Inc. These and other associated trade-marks and/or service marks have been licensed for use by BMO Asset Management Inc. None of the BMO ETFs are sponsored, endorsed, sold or promoted by any of the aforementioned trade-mark owners and the related index providers or their respective affiliates or their third party licensors and these entities make no representation, warranty or condition regarding the advisability of buying, selling or holding units in the BMO ETFs.
