This Week in ETFs:
from January 23-27

Ready for Something New? 5 ETFs Launch Today.

Jan. 26, 2023

Presenting five new ETFs with a range of solutions covering core fixed income, sector-based covered calls, agriculture and inflation.

U.S. Core Fixed Income

  • Why buy: Diversification through broader fixed income market with lower duration than Canada, and provides more access to corporate bonds and a securitized market.
  • Exposure to the flagship broad U.S. fixed income index – Bloomberg US Aggregate Bond Index.
  • MER 0.09%*

ZUAG - BMO US Aggregate Bond Index ETF

ZUAG.F - BMO US Aggregate Bond Index ETF (Hedged Units)

ZUAG.U - BMO US Aggregate Bond Index ETF (USD Units)

Sector-Based Covered Call

  • Why buy: Yield you can trust for enhanced income and growth.
  • Growth from global energy companies and income from the covered call overlay
  • Equal weight portfolio of 20 stocks, including companies such as Enbridge, Chevron Corp. and Canadian Natural Resources Ltd.
  • Est. Dist. Yield 8.5%**

ZWEN - BMO Covered Call Energy ETF

Sector-Based Covered Call

  • Why buy: Yield you can trust for enhanced income and growth.
  • Exposure to U.S. health care companies, benefitting from an increase in demand for health care services as the global population ages and life expectancies continue to increase.***
  • Equal weight portfolio of 23 stocks, including companies such as UnitedHealth Group Inc., Cigna Corp. and Pfizer.
  • Est. Dist. Yield 6.5%**

ZWHC - BMO Covered Call Health Care ETF

Inflation Solution

  • Why buy: Exposure to companies that are directly involved in the food production process. These types of companies can pass on costs to consumers which can serve as a good hedge against inflation.
  • With rising food prices, benefit from long term capital appreciation with targeted exposure to the largest global companies that produce or are involved with the production of necessities.
  • Concentrated portfolio of 30 stocks such as General Mills Inc., Deere & Co. and Archer Daniels Midland Co.
  • MER 0.40%*

ZEAT - BMO Global Agriculture ETF

Inflation Solutions

  • Why buy: With increased interest rates and continued rate hikes in 2022, Treasury-Inflation Protected Securities (TIPS) are designed to protect against inflation and can be used as a core fixed income holding.
  • U.S. issued bonds backed by the U.S. federal government that pay a fixed interest rate as the bonds’ par value adjusts with the inflation rate.
  • Exposure to flagship U.S. TIPS Index - Bloomberg U.S. Treasury Inflation-Linked Bond Index (Series-L).
  • MER 0.17%*

TIPS - BMO US TIPS Index ETF 

TIPS.F - BMO US TIPS Index ETF (Hedged Units) 

TIPS.U - BMO US TIPS Index ETF (USD Units)

Retirement Solution

  • Why buy: Pays out 6% annual distribution through a fixed monthly distribution based on NAV.
  • ZGRO has been live for 3 years; past performance is in all systems; this is simply a T6 version.
  • MER 0.20%*

ZGRO.T - BMO Growth ETF (Fixed Percentage Distribution Units)

*Management Expense Ratios (MERs) is an estimate if the fund is less than one year old since the audited MER of the ETF has not gone through a financial reporting period.

**Estimated Distribution Yield was calculated by using the expected annualized distribution yield (which may be based on income, dividends, and option premiums as applicable) of the underlying portfolio and excluding any capital gains from portfolio turnover, less expenses. The distribution rate is based on the starting NAV of $30. Distribution yield is not an indicator of overall performance and will change based on market conditions, NAV fluctuations, and is not guaranteed.

***World Health Organization.

****These T6 units are Fixed Percentage Distribution Units that provide a fixed monthly distribution based on an annual distribution rate of 6%. Distributions may be comprised of net income, net realized capital gains and/​or a return of capital.

FOR FINANCIAL ADVISOR USE ONLY.

Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus.

This communication is for information purposes. The information contained herein is not, and should not be construed as, investment advice to any party. Investments 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 Portfolio Manager 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.

The payment of distributions is not guaranteed and may fluctuate. The payment of distributions should not be confused with an Exchange Traded Fund’s performance, rate of return or yield. If distributions paid by the Exchange Traded Fund are greater than the performance of the Exchange Traded Fund, your original investment will shrink. Distributions paid as a result of capital gains realized by an Exchange Traded Fund, and income and dividends earned by an Exchange Traded Fund are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero. Please refer to the Exchange Traded Funds, distribution policy in the prospectus.

Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual fund investments. Please read the fund facts or prospectus of the relevant mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Distributions are not guaranteed and are subject to change and/​or elimination. For a summary of the risks of an investment in BMO Mutual Funds, please see the specific risks set out in the prospectus.

BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate.

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