Investment firm’s new ETFs provide income options

Canadian ETF leader BMO Asset Management (BMO AM) has expanded its lineup to provide investors with additional innovative income solutions. With nine new offerings, the firm now has more than 80 listings and is aiming to continue its seven-year streak of capturing the most inflows in the Canadian ETF industry – a record supported by Bloomberg data.

The offerings, which have begun trading on the TSX, include:

• BMO Canadian High Dividend Covered-Call ETF (ZWC) – the newest addition to BMO AM’s covered-call ETF suite, it offers higher yield from dividend-paying stocks through a covered-call overlay;
• BMO US Put Write Hedged to Canada ETF (ZPH) – available in hedged, unhedged, and USD series, it lets investors access a portfolio of put options on US large-cap equity securities;
• BMO US Preferred Share Index ETF (ZUP/ZUP.U) and BMO US Preferred Share Hedged to CAD Index ETF (ZHP) – investing in and holding the component stocks of the Solactive US Preferred Share Select Index, these ETFs provide access to the US preferred-share market with a smart-beta dividend yield screen. Both ETFs are available hedged, unhedged, and in USD series.
• Accumulating units – annual reinvested and consolidated distributions let these units provide investors with a fixed-income solution in a long-term rising-rate environment. These will be available for the following ETFs:
  • BMO Short Corporate Bond Index ETF (ZCS.L)
  • BMO Short Federal Bond Index ETF (ZFS.L)
  • BMO Short Provincial Bond Index ETF (ZPS.L)
  • BMO Ultra Short-Term Bond ETF (ZST.L)

“These new offerings enable us to build on the success of our existing suite of ETFs and provide investors more choice when structuring their portfolios,” said Kevin GoPaul, head of BMO Global Asset Management Canada and global head of ETFs and chief investment officer of BMO Asset Management.


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