This Week in ETFs: From October 2-6
NEW: 8 BMO ETFs Launch Today! Details Inside.Oct. 2, 2023
Presenting eight new ETFs covering structured outcomes, Canadian concentrated equities, U.S. cash, Canadian and U.S. alternatives, and active alpha seeking strategies.
Click on the ETFs below to learn more.
Structured Outcome ETFs
Dial down risk or dial up equity returns
- 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
- 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
- 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
Canadian Broad Based
Canada’s concentrated 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 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
Canadian and U.S. Alternatives
Potentially benefit from both directions of price movements within the Canadian or U.S. markets
- Why buy: Long and short positions within a portfolio to capitalize on rises and declines in stock prices at the same time
- Access a liquid alternative strategy that can complement existing portfolio holdings without the typical rigorous documentation requirements of traditional alternative strategies
Active Alpha Seeking
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
Contact your BMO Exchange Traded Funds specialist for more information.
† Single exposure is approximate and not exact.
FOR FINANCIAL ADVISOR USE ONLY.
An investor that purchases Units of a Structured Outcome ETF other than 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 defined 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.
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.
For a summary of the risks of an investment in the BMO ETFs or ETF Series of the BMO Mutual Funds, please see the specific risks set out in the prospectus. BMO ETFs and ETF Series 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. ETF Series of the BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund 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.
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