BMO launches new ETPs on Cboe Canada
Cboe Canada, formerly known as NEO Exchange, today announced BMO has returned for the launch of four new Exchange Traded Products.
Three of the new funds managed by BMO Asset Management Inc., and one managed by BMO Investments Inc., begin trading on Cboe Canada today under the symbols ZEBA, ZUEA, ZOCT, and BGDV, respectively.
“We are pleased to launch our new Structured Outcome ETFs on the Cboe Canada Exchange. The new Structured Outcome ETFs include both Buffers and Accelerators, allowing investors to gain exposure to broad equity markets, while differentiating their risk-return profiles,” said Sara Petrcich, Managing Director and Head of Exchange Traded Funds and Structured Solutions, BMO Global Asset Management.
“Buffer ETFs provide protection on the downside while Accelerator ETFs can enhance return potential with no additional risk. These innovative solutions combine the familiarity of an ETF with structured solutions that give investors a unique way to tailor their exposure to equity markets and make progress on their financial goals.”
The four new BMO funds include:
- BMO Canadian Banks Accelerator ETF (ZEBA) – Aims to provide income and approximately double the price return of an index containing equity securities of Canadian banks up to a cap, with approximately single exposure to downside. The fund’s cap will reset at the end of the Target Outcome Period, approximately every quarter.
- BMO US Equity Accelerator Hedged to CAD ETF (ZUEA) – Seeks to provide income and approximately double the price return of an index measuring the large-cap segment of the US equity market, with single exposure to the downside. The fund’s cap will reset at the end of the Target Outcome Period, approximately every quarter.
- BMO US Equity Buffer Hedged to CAD ETF – October (ZOCT) – Seeks to match the income and appreciation that matches, to the extent possible, the return of an index measuring the large-cap segment of the US equity market to an upside cap, while providing protection against the first 15% (before fees, taxes and expenses) of a decrease in the market price of the reference index. The fund resets after the end of the Target Outcome Period of approximately a year each October.
- BMO Global Dividend Opportunities Fund (BGDV) – Seeks to increase the value of the investment over the long term by investing primarily in equity securities of companies from around the world that pay dividends or that are expected to pay dividends.
Investors can trade units of the funds described above through their usual investment channels, including discount brokerage platforms and full-service dealers.
“We are honoured that BMO has chosen once again to partner with Cboe Canada for the launch of their new funds. These listings are yet another example of financial innovation democratizing investment strategies that were previously available to only a few” remarked Jos Schmitt, President and CEO of Cboe Canada. “We look forward to furthering our relationship with BMO and providing them with the excellent service and support we have built our name on.”