IRR Updates for BMO Target Maturity Bond ETFs

Target Your Fixed Income ETFs with Precision

As Canada’s largest fixed income ETF provider¹, BMO Exchange Traded Funds is now offering Target Maturity Bond ETFs! Whether the goal is cashflow generation, education funding, or purchasing a home, BMO’s Target Canadian Corporate Bond ETFs provide more yield to maturity (YTM)² certainty to help investors meet their financial objectives³.

* Internal Rate of Return Source: BMO GAM as of May 16, 2025.

Get the Precision of a Bond, with the Liquidity and Diversification of an ETF!

Important Key Points:

• ETFs with an Individual Bond Like Experience – These ETFs are designed to act like an individual bond with a defined maturity and the reduction of duration risk² over time.
• Not Your Typical Target Maturity Bond ETF – Unlike traditional target maturity ETFs, the goal of these ETFs is to not transition into cash in the year of maturity to manage performance and YTM outcome expectations.
• Get More YTM Certainty – These ETFs hold a static portfolio and will not rebalance providing greater yield certainty for investors upon maturity.
• Personal Goal Setting – Similar to holding an individual bond, investors can have the ability to match the ETFs’ maturity dates with their investment time horizons.
• Management Fee of Only 0.15% – The consideration of fees in your investment decision making process is important as fees can impact overall performance.
• Risk² Rating – Low
• To learn more about BMO’s New Approach to Target Maturity Bond ETFs please visit our:
  Target Your Fixed Income ETFs with Precision PDF
  FAQs PDF
  Video

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^* Internal Rate of Return Source: BMO Global Asset Management as of March 17, 2025. The internal rate of return (IRR) is the annual rate of growth that a fixed income ETF is expected to generate if held to maturity. IRR calculations on are based on the fund’s NAV, scheduled net flows from the bond portfolio and hedges, and annual compounding for that specific point of time. IRRs are generally updated on a weekly basis, and are before commissions, management fees and expenses. Distributions, yields, and rates are not guaranteed and are subject to change and/​or elimination. Past IRR performance is not indicative of future IRR performance.

¹ Source: Bloomberg January 31, 2025.

² Yield to maturity (YTM): The total expected return from a bond when it is held until maturity – including all interest, coupon payments, and premium or discount adjustments.

³ Duration & Duration Risk: A measure of the sensitivity of the price of a fixed income investment to a change in interest rates.

Duration is expressed as number of years. The price of a bond with a longer duration would be expected to rise (fall) more than the price of a bond with lower duration when interest rates fall (rise). Essentially, duration estimates the percentage change in a bond’s price for a change in interest rates. This sensitivity is what constitutes the risk: as interest rates rise, bond prices fall, and vice versa.