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Product Insights

BMO ETF Launch Summary – Expanding Our Suite of Structured Outcome ETFs

Get comfort when you need it the most and dial down your equity risk. Introducing the BMO Buffer ETF ZJAN, a dynamic solution designed to suit specific investment objectives. Explore the next frontier of investments, where innovation meets opportunity.

Jan. 26, 2024
Structured Outcome ETFs

ZJAN – BMO US Equity Buffer Hedged to CAD ETF – January

Dial your equity risk down

Why Buy?

  • Have the potential to enjoy a smoother investment experience and know your structured outcomes prior to investing
  • Buffer ETFs help you participate in the upside to a pre-determined level or cap with a buffer zone to mitigate losses (-15% downside protection if held from inception to the end of the Target Outcome Period) <
  • When the underlying reference ETF pays a dividend, it flows through the Buffer ETF directly to unitholders. Dividends are not subject to the downside buffer or the price cap
  • ZJAN invests in the BMO S&P 500 Hedged to CAD Index ETF (ticker: ZUE) > which can complement your core equity positions while mitigating risk
  • Distributions: Quarterly
  • Management Fee: 0.65%
  • ^Risk Rating: Medium

ZOCT - BMO US Equity Buffer Hedged to CAD ETF – October

Dial your equity risk down

Why Buy?

  • Designed for investors looking for downside protection up to a 15% decline (before fees taxes and expenses) over a 1-year outcome period
  • Investors know their structured outcomes prior to investing and can defend their investment*
  • The ETF Invests in broad U.S. equities which complements core equity positions while mitigating risk
  • Distributions: Quarterly
  • Management Fee: 0.65%
  • Risk§ Rating: Medium

ZUEA – BMO US Equity Accelerator Hedged to CAD ETF

Dial your equity return up

Why Buy?

  • Designed to offer approximately 2x the price return on the S&P 500 hedged to CAD, to a cap of 7.0% (before fees taxes and expenses), with single exposure on the downside over a 3-month period
  • Accelerator ETFs reset every three months to continue capturing upside to the cap
  • Distributions: Quarterly
  • Management Fee: 0.65%
  • Risk§ Rating: Medium

ZEBA – BMO Canadian Banks Accelerator ETF

Dial your equity return up

Why Buy?

  • Offers approximately 2x the price return on Canadian banks, to a cap of 6.6% (before fees taxes and expenses) with single exposure on the downside, over a 3-month period 
  • Accelerator ETFs reset every three months to continue capturing upside to the cap
  • Distributions: Monthly
  • Management Fee: 0.65%
  • Risk§ Rating: Medium

For more on our Buffer and Accelerator ETFs please visit: Dial your equity risk down featuring BMO’s ZOCT ETF and Dial Your Equity Returns Up featuring BMO’s ZUEA and ZEBA ETFs.


Canadian Broad Based

ZIU - BMO S&P/TSX 60 Index ETF

Canada’s Large Cap Index

Why Buy?

  • Get exposure to the 60 largest companies by market capitalization that are listed on the TSX
  • Access to some of Canada’s biggest sectors - Financials, Energy and Materials
  • A concentrated exposure to the largest and most liquid publicly traded companies within Canada
  • Distributions: Quarterly
  • Management Fee: 0.13%
  • Risk§ Rating: Medium

Please see the ZIU Sales Aid.



U.S. Cash

ZUCM/ZUCM.U - BMO USD Cash Management ETF

A place to park cash

Why Buy?

  • Access to short term U.S. Treasury Bills which are backed by the U.S. Government
  • Get capital preservation with highly liquid securities and no lock up periods
  • Lower interest rate sensitivity due to short duration bonds
  • Distributions: Monthly
  • Management Fee: 0.12%
  • Risk§ Rating: ZUCM Low Medium, ZUCM.U Low

For more places to park cash please visit A Place to Park Cash ZMMK, ZUCM, ZST, ZUS.V.


Canadian and U.S. Alternatives

ZLSC - BMO Long Short Canadian Equity ETF

Benefit from both directions of price movements within the Canadian market

Why Buy?

  • Long and short positions within a portfolio to capitalize on rises and declines in stock prices at the same time
  • Potential for stronger risk-adjusted performance than long-only equity funds, and to enhance returns in turbulent markets within Canada
  • Access a liquid alternative strategy that can complement existing portfolio holdings without the typical rigorous documentation requirements of traditional alternative strategies
  • Distributions: Quarterly
  • Management Fee: 0.65%
  • Risk§ Rating: Low to Medium

ZLSU - BMO Long Short US Equity ETF

Benefit from both directions of price movements within the U.S. market

Why Buy?

  • Long and short positions within a portfolio to capitalize on rises and declines in stock prices at the same time
  • Potential for stronger risk-adjusted performance than long-only equity funds, and to enhance returns in turbulent markets within the U.S.
  • Access a liquid alternative strategy that can complement existing portfolio holdings without the typical rigorous documentation requirements of traditional alternative strategies
  • Distributions: Quarterly
  • Management Fee: 0.65%
  • Risk§ Rating: Low to Medium

Please see our Why invest in BMO ETF’s Long-Short Strategy Job Aid?



Active Alpha-Seeking

BGDV - BMO Global Dividend Opportunities Fund Active ETF Series

Dividend paying companies diversified across multiple sectors and geographies

Why Buy?

  • Invests in global dividend companies that have proven business models with healthy balance sheets and effective capital management across economic cycles
  • Disciplined investment process that is driven by the dynamic interaction of innovative themes, sector expertise and economic insights
  • Distributions: Monthly
  • Management Fee: 0.75%
  • Risk§ Rating: Medium

Single exposure is approximate and not exact.

Duration: can measure how long it takes, in years, for an investor to be repaid a bond’s price by the bond’s total cash flows. Duration can also measure the sensitivity of a bond’s or fixed income portfolio’s price to changes in interest rates.

§ Risk is defined as the uncertainty of return and the potential for capital loss in your investments.

Changes in rates of exchange may also reduce the value of your investment.

>Changes in rates of exchange may also reduce the value of your investment.

<BMO Buffer ETFs seeks to provide income and appreciation that match the return of a Reference Index up to a cap (before fees, expenses and taxes), while providing a buffer against the first 15% (before fees, expenses and taxes) of a decrease in the Reference Index over a period of approximately one year, starting from the first business day of the stated outcome period.

*Provided investors remain invested throughout the duration of the Target Outcome Period. The Target Outcome Period for ZOCT is approximately one year from the first business day of October of each year to on or about the last business day of September of that year. The Target Outcome Period for ZJAN, is approximately one year from the third Friday of January of each year to on or about the third Friday of January of the following year.

^Risk is defined as the uncertainty of return and the potential for capital loss in your investments.

An investor that purchases Units of a Structured Outcome ETF other than at starting NAV on the first day of a Target Outcome Period and/​or sells Units of a Structured Outcome ETF prior to the end of a Target Outcome Period may experience results that are very different from the target outcomes sought by the Structured Outcome ETF for that Target Outcome Period. Both the cap and, where applicable, the buffer are fixed levels that are calculated in relation to the market price of the applicable Reference ETF and a Structured Outcome ETF’s NAV (as Structured herein) at the start of each Target Outcome Period. As the market price of the applicable Reference ETF and the Structured Outcome ETF’s NAV will change over the Target Outcome Period, an investor acquiring Units of a Structured Outcome ETF after the start of a Target Outcome Period will likely have a different return potential than an investor who purchased Units of a Structured Outcome ETF at the start of the Target Outcome Period. This is because while the cap and, as applicable, the buffer for the Target Outcome Period are fixed levels that remain constant throughout the Target Outcome Period, an investor purchasing Units of a Structured Outcome ETF at market value during the Target Outcome Period likely purchase Units of a Structured Outcome ETF at a market price that is different from the Structured Outcome ETF’s NAV at the start of the Target Outcome Period (i.e., the NAV that the cap and, as applicable, the buffer reference). In addition, the market price of the applicable Reference ETF is likely to be different from the price of that Reference ETF at the start of the Target Outcome Period. To achieve the intended target outcomes sought by a Structured Outcome ETF for a Target Outcome Period, an investor must hold Units of the Structured Outcome ETF for that entire Target Outcome Period.

The Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by the Manager. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”), and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Manager. The ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.

For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/​or elimination.

BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.

This material is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/​or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. 

®/™Registered trademarks/​trademark of Bank of Montreal, used under licence.