BMO is rolling out nine new ETFs, including three global corporate bond ETFs across a range of maturity bands. The three global corporate bond ETFs and a global high yield ETF track the Barclays Very Liquid Index, a subset of the Barclays Global Aggregate Bond Index.
“Our bond ETFs provide investors with the ability to diversify their exposure through global corporate bonds and high yield bonds,” said Kevin Gopaul, head of ETFs at BMO. “These are the first ETFs to offer a range of specific global corporate bond maturity bands, allowing investors to position their portfolios more precisely on the yield curve.”
In addition to the four bond ETFs, BMO is also introducing five equity ETFs. “Low yields and uncertainty around interest rates are causing investors to review their portfolios. In this challenging environment, investors can look to ETFs to deliver yield and help in the implementation of more precise portfolio construction,” said Gopaul.
The nine ETFs are listed in sterling on the London Stock Exchange and designed specifically for UK and European investors. Those that invest in non-sterling investments are offered as sterling-hedged funds to mitigate the currency risk.
Part of the BMO Financial Group, BMO is the first Canadian bank to offer ETFs in Europe. BMO is the second largest provider of ETFs in Canada with more than 60 different ETFs. The firm launched three ETFs in Hong Kong in 2014.
The BMO Global Asset Management brand launched in Europe earlier this year. Richard Wilson, CEO of BMO Global Asset Management (EMEA), said: “Building on this momentum, we have used our experience managing ETFs in Canada and Hong Kong to develop a tailored offering for European investors.”
