Canada-based BMO Financial Group has launched eight exchange-traded funds, bringing its product line to a total of 30 ETFs.
The following ETFs have begun trading on the Toronto Stock Exchange:
• BMO Equal Weight Reits Index ETF
• BMO Equal Weight US Banks Hedged to CAD Index ETF
• BMO Equal Weight US Health Care Hedged to CAD Index ETF
• BMO Junior Oil Index ETF
• BMO Junior Gas Index ETF
• BMO Long Federal Bond Index ETF
• BMO Real Return Bond Index ETF
• BMO Emerging Markets Bond Hedged to CAD Index ETF
The ETFs complement BMO’s current line-up and include three fixed income funds, one of which provides exposure to emerging market bonds.
Also highlighted is exposure to oil and gas in the small cap sector, as well as equal weight access to US healthcare and US banks.
"We are very excited about the most recent expansion in our ETF offering which reflects our ongoing commitment to providing Canadian investors greater access to global markets," says Rajiv Silgardo, chief executive of BMO Asset Management. "These latest additions further diversify our offering in a number of areas, including the health care and oil and gas sectors, allowing Canadian investors the opportunity to capitalise on the ongoing growth in key industries."
The new roll-out includes three currency-hedged ETFs, which provide investors in Canada access to growth in other countries while mitigating the risk of losses based on foreign exchange volatility. As the Canadian dollar gained against other currencies over the past year, currency volatility has increased significantly and may remain elevated in the coming years. BMO Equal Weight US Banks Hedged to CAD Index ETF, BMO Equal Weight US Health Care Hedged to CAD Index ETF and BMO Emerging Markets Bond Hedged to CAD Index ETF are designed to address this issue by helping investors hedge their currency exposure.
"For those in need of cost-efficient hedging solutions, we have added to our currency-hedged ETFs to allow investors to access the growth and diversity of non-Canadian markets without the added volatility often attributed to currency," adds Silgardo.