BMO expands in actively managed ETFs

Morningstar Canada 29 May, 2018 | 5:00PM

BMO Investments Inc. today expanded its extensive line-up of exchange-traded funds with the launch of ETF versions of four of its mutual funds. Listed on the Toronto Stock Exchange, the new offerings consist of three actively managed fixed-income ETFs and a specialty equity mandate with a feminist theme.

They are:

BMO Core Plus Bond (ZCPB), managed by BMO Asset Management, which invests primarily in investment-grade Canadian fixed-income securities and will actively manage its duration exposure, its mix of government versus corporate securities, and other aspects of the portfolio. The ETF may also invest tactically in foreign bonds and foreign currencies. The management fee is 0.50%.

BMO Global Multi-Sector Bond (ZMSB), also managed by BMO Asset Management, which invests globally in fixed-income securities. Along with investment-grade securities of developed-markets issuers, the ETF may also hold other income-producing securities such as high-yield bonds and emerging-market bonds. The management fee is 0.60%.

BMO Global Strategic Bond (ZGSB), sub-advised by PIMCO Canada, whose strategy is consistent with funds in the High Yield Fixed Income category. The ETF will emphasize higher-yielding credits including those that are below investment grade. The management fee is 0.73%.

BMO Women in Leadership (WOMN), which invests in companies that have gender-diverse leadership and a commitment to gender diversity. Based on the Barclays Women in Leadership North America Index, this BMO mandate was launched as a mutual fund in April 2016. The management fee for the ETF is 0.35%. BMO's ETF management fees cover most expenses.

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