This Week in ETFs: From March 17-21

NEW: Decoding Q1 Canadian Bank Earnings | Listen to Podcast

NEW BMO TARGET MATURITY BOND ETFs

As Canada’s largest fixed income ETF provider,¹ BMO Exchange Traded Funds is now offering Target Maturity Bond ETFs! Whether the goal is cashflow generation, education funding, or purchasing a home,² BMO’s Target Canadian Corporate Bond ETFs provide more yield to maturity (YTM)³ certainty to help investors meeting their financial objectives.⁴

Get the precision of a bond, with the liquidity and diversification of an ETF!

Key Points:

Get More YTM Certainty — Not Your Typical Maturity Bond ETF: Unlike traditional target maturity bond ETFs, the goal of these ETFs is to not transition into cash in the year of maturity to manage performance and YTM outcome expectations.
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 risk³ over time.
Management Fee of Only 0.15%: The consideration of fees in your investment decision-making process is important as fees can impact overall performance.
Risk³ Rating: Low

To learn more about BMO’s new approach to Target Maturity Bond ETFs, please see our:

Announcement: See the BMO Target Canadian Corporate Bond ETFs Press Release

YOU’RE INVITED WHICH U.S. SECTORS COULD THRIVE?

Join Us in a City Near You: In these unique 1-hour lunch-time sessions, strategists from BMO Exchange Traded Funds and State Street Global Advisors (SSGA) come together to provide timely insights for today’s politically charged markets combined with a practical approach to asset allocation strategies using BMO SPDR Select Sector Index ETFs.

Learn how these U.S. market sector ETFs can target emerging opportunities and help insulate portfolios in today’s volatile markets.

Our next stops:
- Montreal, Quebec, on April 1. Register
- Ottawa, Ontario, on April 2. Register
- Burlington, Ontario, on April 3. Register

ACCESS OUR PORTFOLIO MANAGERS

4:10 PM Pulse: Join our Advisor-only conference call every other Wednesday at 4:10 PM ET to hear our Portfolio Managers as they share fund updates and actionable insights in real time. Add to Calendar

Date	Topic	Host
Wednesday, March 26	Invest overseas with ease	Acushla Vestby, Managing Director, Head Structured Solutions and National Accounts

GET READY FOR TAX SEASON

BMO ETFs 2024 Tax Parameters: The tax factors of distributions earned in 2024. Active ETF Series tax factors coming soon. Find an ETF
What to Expect During Tax Season: Breaking down frequently asked questions, including the tax treatments for various ETF distributions. Read
Tax Issues & U.S. Investing: We break down common issues impacting U.S. investments and client tax liabilities.^* Read

Subscribe to BMO ETFs: Views from the Desk on your preferred podcast platform:

¹Bloomberg as of January 31, 2025.

²All investments involve risk. The value of an ETF can go down as well as up and you could lose money. The risk of an ETF is rated based on the volatility of the ETF’s returns using the standardized risk classification methodology mandated by the Canadian Securities Administrators. Historical volatility doesn’t tell you how volatile an ETF will be in the future. An ETF with a risk rating of “low” can still lose money. For more information about the risk rating and specific risks that can affect an ETF’s returns, see the BMO ETFs’ simplified prospectus.

³Yield 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.

⁴Duration & 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.

FOR FINANCIAL ADVISOR USE ONLY.

* Disclaimer for page four of six regarding product comparisons: The comparison presented is intended to illustrate the general tax treatment of product “BMO MSCI EAFE Index ETF (ZEA)” as compared with the general tax treatment of product “BMO MSCI EAFE Hedged to CAD Index ETF (ZDM)”. There are various differences that may exist between product “ZAE” and product “ZDM” that may affect the tax treatment of each. The objectives and strategies of product “ZAE” result in holdings that do not necessarily reflect the constituents and weightings within product “ZDM”. Please consult a tax professional for more information.

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This communication 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.

The viewpoints expressed by the authors represents their assessment of the markets at the time of publication. Those views are subject to change without notice at any time without any kind of notice. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. This communication is intended for informational purposes only.

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Past Performance is not indicative of future results.

The Select Sector SPDR Trust consists of eleven separate investment portfolios (each a “Select Sector SPDR ETF” or an “ETF” and collectively the “Select Sector SPDR ETFs” or the “ETFs”). Each Select Sector SPDR ETF is an “index fund” that invests in a particular sector or group of industries represented by a specified Select Sector Index. The companies included in each Select Sector Index are selected on the basis of general industry classification from a universe of companies defined by the S&P 500®. The investment objective of each ETF is to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in a particular sector or group of industries, as represented by a specified market sector index.

The S&P 500, SPDRs, and Select Sector SPDRs are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use. The stocks included in each Select Sector Index were selected by the compilation agent. Their composition and weighting can be expected to differ to that in any similar indexes that are published by S&P.

The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks.

The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.

You cannot invest directly in an index.

FundGrade A+^® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+^® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+^® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+^® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+^® Award. For more information, see http://www.fundgradeawards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata. The FundGrade A+ Awards and the FundGrade Ratings being referenced are calculated based on comparisons of performance of investment funds within a specified category established by the CIFSC.

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or simplified prospectus of the BMO ETFs before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. 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 simplified 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.

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