The New BMO ETFs will provide investors with exposure to the
price of gold bullion without the hassle of buying and storing the
precious metal
TORONTO, March 8,
2024 /CNW/ - BMO Asset Management Inc. ("BMOAM
Inc."), the manager of the BMO ETFs, today announced the launch of
the following new BMO ETFs (collectively, the "New BMO ETFs"):
- BMO Gold Bullion ETF (CAD Units) (TSX: ZGLD)
- BMO Gold Bullion ETF (USD Units) (TSX: ZGLD.U)
- BMO Gold Bullion Hedged to CAD ETF (CAD Units) (TSX: ZGLH)
Each of the New BMO ETFs has closed its initial offering of
exchange traded units and today is listed and trading on the
Toronto Stock Exchange (the "TSX").
The New BMO ETFs offer investors another way to invest in
precious metals and were created in response to investor demand for
exchange traded funds that not only invest in gold, but also hold
physical gold in a highly secured location within Canada. BMO Gold Bullion Hedged to CAD ETF
will offer investors a hedged version of BMO Gold Bullion ETF.
"In times of economic uncertainty, geo-political concerns and
stubbornly elevated inflation, gold is an attractive asset class
for many investors looking to diversify their investment
portfolio," said Alfred Lee,
Portfolio Manager, BMO ETFs. "The New BMO ETFs will provide
investors an accessible, cost-effective way to gain exposure to
physical gold, without the difficulties associated with buying and
storing precious metals, helping investors make progress towards
their investment objectives."
Golden Opportunity for
Investors
BMO Gold Bullion ETF
BMO Gold Bullion ETF seeks to replicate the performance of the
price of gold bullion, net of fees and expenses, by investing in
long-term holdings of unencumbered gold bullion in 400 troy ounce
international bar sizes. BMO Gold Bullion ETF does not speculate
with respect to short-term changes and is not actively managed.
Investors can choose to purchase units that are priced in Canadian
dollars or U.S. dollars.
BMO Gold Bullion Hedged to CAD ETF
BMO Gold Bullion Hedged to CAD ETF seeks to provide exposure to
the price of gold bullion, net of fees and expenses. Currently, BMO
Gold Bullion Hedged to CAD ETF primarily invests in BMO Gold
Bullion ETF and uses derivative instruments to hedge foreign
currency exposure back to the Canadian dollar.
Investing In Gold with the New BMO
ETFs
The New BMO ETFs further bolster the choices for investors
looking to gain exposure to the precious metals market. In addition
to the New BMO ETFs, the following are existing index tracking BMO
ETFs that provide investment exposure to gold mining companies:
BMO Equal Weight Global Gold Index ETF (TSX: ZGD) seeks to
replicate, to the extent possible, the performance of an
equal-weight diversified global gold mining companies index, net of
expenses. Currently, the underlying index is the Solactive Equal
Weight Global Gold Index.
BMO Junior Gold Index ETF (TSX: ZJG) seeks to replicate, to the
extent possible, the performance of a junior gold companies index,
net of expenses. Currently, the underlying index is the Dow Jones
North America Select Junior Gold Index.
Further information can be found at BMO ETF Centre.
Solactive AG ("Solactive") is the licensor of the Solactive
Equal Weight Global Gold Index (the "Solactive Index"). The ETF
that is based on the Solactive Index is not sponsored, endorsed,
promoted or sold by Solactive in any way and Solactive makes no
express or implied representation, guarantee or assurance with
regard to: (a) the advisability in investing in the ETF; (b) the
quality, accuracy and/or completeness of the Solactive Index;
and/or (c) the results obtained or to be obtained by any person or
entity from the use of the Solactive Index. Solactive reserves the
right to change the methods of calculation or publication with
respect to the Solactive Index. Solactive shall not be liable for
any damages suffered or incurred as a result of the use (or
inability to use) of the Solactive Index.
The Dow Jones North America Select Junior Gold Index (the
"Index") is a product of S&P Dow Jones Indices LLC or its
affiliates ("SPDJI"), and has been licensed for use by BMOAM Inc.
S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX®
are trademarks of S&P Global, Inc. or its affiliates
("S&P") and Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC ("Dow Jones"), and these trademarks have
been licensed for use by SPDJI and sublicensed for certain purposes
by BMOAM Inc. The ETF is not sponsored, endorsed, sold or promoted
by SPDJI, Dow Jones, S&P, their respective affiliates, and none
of such parties make any representation regarding the advisability
of investing in such product(s) nor do they have any liability for
any errors, omissions, or interruptions of the Index.
Commissions, management fees and expenses all may be associated
with investments in exchange traded funds. Please read the ETF
Facts or prospectus of the BMO ETFs before investing. Exchange
traded funds are not guaranteed, their values change frequently,
and past performance may not be repeated.
For a summary of the risks of an investment in the BMO ETFs,
please see the specific risks set out in the BMO ETF's
prospectus. BMO ETFs trade like stocks, fluctuate in market
value and may trade at a discount to their net asset value, which
may increase the risk of loss. Distributions are not guaranteed and
are subject to change and/or elimination.
BMO ETFs are managed by BMO Asset Management Inc., which is an
investment fund manager and a portfolio manager, and a separate
legal entity from Bank of Montreal.
®/™Registered trademarks/trademark of Bank of Montreal, used under licence.
About BMO Exchange Traded Funds
(ETFs)
BMO Exchange Traded Funds has been an ETF provider
in Canada for more than 12 years, with over 100
strategies, over 23 per cent market share
in Canada1, and $97.5 billion in assets
under management. BMO ETFs are designed to stay ahead of market
trends and provide compelling solutions to help advisors and
investors. This includes a comprehensive suite of ETFs developed
in Canada for Canadians, such as cost-effective core
equity ETFs following market leading indexes, and a broad range of
fixed income ETFs; solution-based ETFs responding to client demand;
and innovation with smart beta ETFs, as well as combining active
and passive investing with ETF series of active mutual funds.
1Morningstar, December
2023
|
About BMO Financial
Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of
$1.3 trillion as of January 31, 2024. Serving customers for 200 years
and counting, BMO is a diverse team of highly engaged employees
providing a broad range of personal and commercial banking, wealth
management, global markets and investment banking products and
services to 13 million customers across Canada, the United
States, and in select markets globally. Driven by a single
purpose, to Boldly Grow the Good in business and life, BMO
is committed to driving positive change in the world, and making
progress for a thriving economy, sustainable future, and inclusive
society.
SOURCE BMO Financial Group