Toronto-based BMO Asset Management Inc. (BMO AM) on Wednesday introduced five new ETFs.
Among the new funds is BMO Shiller Select US Index ETF (ZEUS), a Canadian industry-first ETF that offers exclusive access to the cyclically adjusted price earnings (CAPE) methodology — an equal-weight strategy that combines value and momentum, leveraging the research of Robert Shiller.
"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," says Shiller, professor of economics and finance at Yale University, in a statement. "It is a different approach to value investing and was designed to identify stocks that are well established and relatively forgotten, with a long history of earnings but underpriced in the market."
"We're thrilled to draw upon Professor Shiller's renowned scientific and academic research to offer this unique ETF," adds Kevin Gopaul, head of quantitative strategies and ETFs, BMO Global Asset Management, in a statement.
Other ETFs launched include:
> BMO MSCI Canada Value Index ETF (ZVC): This ETF offers investors factor-based access to Canadian companies with higher value characteristics relative to their peers.
> BMO MSCI EAFE Value Index ETF (ZVI): This fund provides investors factor-based access to international companies with higher value characteristics relative to their peers.
> BMO MSCI USA Value Index ETF (ZVU): This ETF offers investors factor-based access to U.S. companies with higher value characteristics relative to their peers.
> BMO High Yield US Corporate Bond Index ETF (ZJK): The first ETF in Canada to offer investors access to unhedged U.S. high yield corporate bonds. With the existing hedged version, BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY), investors now have more choice when accessing high yield corporate bonds.
The new ETFs began trading on the Toronto Stock Exchange on Wednesday.
With this announcement, BMO AM's ETF business now has 95 ETFs in Canada.
Photo copyright: rvlsoft/123RF