BMO Asset Management has launched a number of new exchange traded funds, including a hedged series of BMO Long-Term US Treasury Bond Index ETF on the NEO Exchange.
The BMO Long-Term US Treasury Bond Index ETF (ZTL.F) is designed to give investors exposure to U.S. Treasuries with greater than 20 years to maturity, providing a flight-to-safety trade while mitigating currency impact, says BMO AM.
"U.S. Treasury bonds provide lower-risk investment options for investors concerned with equity market volatility," stated Mark Raes, Head of Product, BMO Global Asset Management in an announcement on Feb. 11. "Our suite of U.S. Treasury ETFs are segmented by term, offering defensive portfolio building blocks with the flexibility to choose your exposure. With the additional launch, we now offer hedged, unhedged and USD options providing investors with more choice to implement their market and currency views."
Fixed income ETFs
In a separate announcement on the same day, BMO AM launched three new fixed income ETF offerings which have begun trading on the Toronto Stock Exchange. They are the BMO BBB Corporate Bond Index ETF (ZBBB), BMO High Quality Corporate Bond Index ETF (ZQB) and BMO Canadian MBS Index ETF (ZMBS).
"Building off the success of our fixed income suite, we now offer more solutions for investors to precisely position their portfolios within a certain credit range," said Mark Raes. "Additionally, we have launched Canada's first MBS ETF, which provides a unique exposure to a segment of the MBS market fully guaranteed by the Canada Mortgage and Housing Corporation (CMHC). These listings further demonstrate our commitment to the bond market, where ETFs bring added liquidity and trading efficiency for fixed income positioning."
Indexes provided by FTSE Russell will underlie these fixed income BMO ETF offerings.
Small and mid-capitalization exposure
In addition, BMO AM introduced new ETFs that provide small and mid-capitalization exposure to U.S. equities. They are: BMO S&P US Mid Cap Index ETF (ZMID, ZMID.U, ZMID.F) and BMO S&P US Small Cap Index ETF (ZSML, ZSML.U, ZSML.F)
"We're responding to an increase in demand from asset allocators for products offering different market capitalization ranges," said Raes. "These ETFs provide exposure to U.S. focused companies and are well represented across sectors and industries."
