ETF Innovation: BMO Launches BMO Canadian Bank Income Index ETF

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Source: Cision

TORONTO, Feb. 10, 2022 /CNW/ – BMO Asset Management Inc. (BMO AM) today launched the BMO Canadian Bank Income Index ETF, expanding its suite of fixed income ETFs to include a unique solution investing in non-traditional securities such as preferred shares and LRCNs while remaining anchored with traditional Canadian bank fixed income. 

“Amid an environment of rising inflation and interest rates, investors are looking for innovative solutions that behave differently than traditional fixed income products,” said Mark Raes, Head of Product (Canada), BMO Global Asset Management. “BMO’s new ZBI ETF gives investors access to yield enhancing segments of the bank funding market – including LRCNs and preferred shares combined with holdings of Bank bonds – resulting in shorter duration and higher yield than the aggregate fixed income market.”

  • BMO Canadian Bank Income Index ETF (ZBI): This ETF seeks to replicate the performance of Solactive Canadian Bank Income Index, a portfolio of traditional and non-traditional Canadian bank debt instruments including LRCNs and preferred shares.

Today’s launch of ZBI, builds on BMO Asset Management Inc.’s recent addition of 10 new ETF listings that further expanded its suite of ESG ETFs to include a climate-focused solution, continued income innovation, and a broadened asset allocation ETF suite.

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.