Toronto-based BMO Asset Management Inc. (BMOAM) has announced the launch of five new ETFs, including three Canadian fixed-income funds.
The new ETFs began trading on the Toronto Stock Exchange on Wednesday.
The fixed-income ETFs include:
> BMO Short-Term Bond Index ETF, which offers exposure to one- to five-year Canadian investment-grade bonds. It has an estimated management expense ratio (MER) of 0.10%.
>BMO Corporate Bond Index ETF, which offers exposure to Canadian investment-grade corporate bonds across all sectors and maturities. It has an estimated MER of 0.17%.
>BMO Government Bond Index ETF, which provides investors with exposure to Canadian federal, provincial and municipal bonds across all maturities. It has an estimated MER of 0.17%.
“We recognize that investors are searching for solutions in a rapidly changing fixed income market,” says Kevin Gopaul, head of BMO Global Asset Management Inc., in a statement. “We deliver tailored ETFs that are as wide or as precise as investors’ needs to build the best possible portfolios.”
In addition, BMOAM is adding hedged and unhedged options to two existing specialty income ETFs. The new ETFs include:
> BMO Europe High Dividend Covered Call ETF, which offers exposure to a portfolio of dividend-paying European companies with a covered call overlay. It has an estimated MER of 0.73%. BMOAM also offers a currency-hedged version of this ETF: BMO Europe High Dividend Covered Call Hedged to CAD ETF.
> BMO US High Dividend Covered Call Hedged to CAD ETF, which provides exposure to a portfolio of dividend-paying U.S. companies with a covered-call overlay. It has an estimated MER of 0.73%. BMOAM also offers a non-currency-hedged version of that ETF: BMO US High Dividend Covered Call ETF.
BMOAM is the second largest provider of ETFs in Canada in terms of assets under management (AUM), with $47.5 billion in AUM as of the end of February, according to figures from National Bank Financial Inc.