Exchange traded funds: new from BMO Financial Group

BMO Financial Group* now offers a comprehensive suite of exchange traded funds, giving you a wide range of portfolio choices. If you’re looking for investments that are easy to understand and offer trading flexibility at a low cost, BMO ETFs may fit your needs. These include:

  1. BMO Canadian Government Bond Index ETF
  2. BMO Dow Jones Canada Titans 60 Index ETF
  3. BMO U.S. Equity Index ETF
  4. BMO Dow Jones DiamondsSM Index ETF
How do ETFs work?

An ETF tracks, as closely as possible, the performance of its benchmark market index, buying all or a representative sample of the securities that make up the index. Units of any ETF you purchase participate in the index performance, to the extent possible.

Reasons to consider an ETF

ETFs offer many unique features and benefits:

Lower cost
ETFs tend to charge lower fees than many other diversified investments. Lower costs mean more of your money is working for you over the long term.
 
Portfolio transparency
You can view your ETF’s current trading price throughout the trading day, verify the actual portfolio composition daily, and track the benchmark index. This provides you with ongoing transparency, critical during volatile investment markets.
 
Investment flexibility
You can buy most ETFs at current market prices, at your convenience during the trading day, for maximum flexibility. Unlike other similar investments, ETFs deliver excellent investment liquidity: you buy and sell when you want.
 
Diversification
ETFs aim to replicate a specific index, incorporating all or a representative sample of the securities that make up that index, regardless of the number of securities involved.
 
Tax advantage
As an index investment, ETFs tend to have low portfolio turnover and therefore are expected to have fewer taxable events that result in tax consequences for unitholders. Also, the ETF redemption structure minimizes the tax consequences to other, non-redeeming unitholders, and offers a greater ability to control when taxes arise.
 

For more information about BMO ETFs, visit bmo.com/etfs.

* BMO ETFs are offered by Jones Heward Investment Counsel Inc., a Canadian institutional money manager and member of BMO Financial Group. Full Legal Disclaimer