BMO Wealth Management has launched Smartfolio, an online investment management service that offers clients model portfolios built from exchange-traded funds (ETFs).
In an announcement on Jan. 18, BMO said that its new product takes a "digital and hands-off approach"; after investors have answered a number of questions about their financial objectives and risk tolerance, Smartfolio will recommend one of five pre-built, actively-monitored ETF portfolios, each of which includes fixed income and equity investments. BMO says that Smartfolio offers "full transparency" into the portfolio's holdings, performance, and transaction history.
“We created BMO SmartFolio with simplicity, intuitiveness and transparency as the guiding design principles. We wanted to make the service as easy to use as possible," says Charyl Galpin, head of BMO Nesbitt Burns. "For example, when clients are asked for specific information, SmartFolio explains the rationale for why it’s needed. Further, we introduced a digital signature technology that expedites the onboarding process. We also provide clients with multiple options for support, including live chat, phone and e-mail.”
According to the Smartfolio web site, the management expense ratios of the ETFs held within the portfolios are expected to average between 0.20% to 0.35%. There is also a minimum quarterly fee of $15, but this is waived for clients who deposit $250 or more into their account during that same calendar quarter.
