Toronto-based BMO Asset Management (BMOAM) Inc. announced on Monday that it will be changing the underlying indices to two exchange-traded funds (ETFs) — BMO Equal Weight U.S. Banks Index ETF and BMO Equal Weight U.S. Banks Hedged to CAD Index ETF — effective on or about Jan. 29.
BMO Equal Weight U.S. Banks Index ETF will track the Solactive equal-weight U.S. bank index instead of the Dow Jones U.S. large-cap banks equal-weight total stock market index, according to an announcement from BMOAM released on Monday.
BMO Equal Weight U.S. Banks Hedged to CAD Index ETF will track the performance of the Canadian-dollar hedged version of the Solactive equal-weight U.S. bank index, instead of the Canadian-dollar hedged version of the Dow Jones U.S. large-cap banks equal-weight total stock market index.
The new indices will seek to provide investors with the same exposure to the asset class to which the two ETFs are currently exposed and also align with the current investment objectives and strategies of those products, the firm’s announcement states. The frequency of rebalancing for the indices remains the same.
An amendment to the offering documents of the ETFs in question has been filed with the securities regulatory authorities, for which a receipt has been issued.