New BMO ETFs

Discuss your favourite picks, broker, and trading or investment style.

Postby parvus » 12 Feb 2009 23:25

BMO Asset Management Announces Filing of Preliminary Prospectus for BMO Exchange Traded Funds
The BMO ETFs are as follows:

<<
- BMO Canadian Government Bond ETF
- BMO Canadian Equity ETF
- BMO US Equity ETF
- BMO International Equity ETF
- BMO Emerging Markets Equity ETF
- BMO Global Infrastructure ETF
- BMO Dow Jones Industrial Average ETF
>>

With the exception of the bond ETF, Dow Jones indexes are used.

Code: Select all
Annual Management Fee            (%)
BMO Canadian GovernmentBond ETF  0.325
BMO Canadian Equity ETF          0.150
BMO US Equity ETF                0.230
BMO International Equity ETF     0.475
BMO Emerging Markets Equity ETF  0.535
BMO Global Infrastructure ETF    0.525
Wovon man nicht sprechen kann, darüber muß man schweigen — a wit
Imagefiniki, the Canadian financial wiki Your go-to guide for financial basics
Image
User avatar
parvus
Gold Ring
Gold Ring
 
Posts: 9697
Joined: 20 Feb 2005 17:09
Location: Waiting for the real estate meltdown on Rua Açores.

Postby Bylo Selhi » 13 Feb 2009 00:09

There's nothing new here unless they truly deliver on the "BMO ETFs will be very cost competitive" and they mean compared to BGI and Vanguard, not Claymore's Advisor class.

Watch this space.
Sedulously eschew obfuscatory hyperverbosity and prolixity.
User avatar
Bylo Selhi
Diamond Ring
Diamond Ring
 
Posts: 23130
Joined: 16 Feb 2005 11:36
Location: Waterloo, ON

Postby queerasmoi » 13 Feb 2009 02:07

Feh, the US equity ETF is (once again) hedged to the Canadian dollar. Do not want.

However, it doesn't leave any indication that the international ETFs are currency-hedged, and the International index is competitive with iShares XIN which has a 0.49% MER. It's based on a "World ex-US" index which may be very useful to Canadian investors - plus there is no double-taxation issue arising from holding an international ETF in the US. Canadians who buy Vanguard's All-World ex-US have to deal with both internal and external withholding taxes, *plus* double-taxation on the small part of the index that includes Canada.
queerasmoi
Gold Ring
Gold Ring
 
Posts: 2718
Joined: 27 May 2008 16:25

BMO to launch ETFs

Postby sjhoffman » 14 Feb 2009 12:58

Thoughts on this announcement from BMO?

TORONTO, February 12, 2009 – BMO Asset Management today announced that a preliminary prospectus has been filed with the securities regulatory authorities in Canada with respect to seven new BMO exchange traded funds (ETFs), including the BMO Global Infrastructure ETF.

The BMO ETFs are as follows:

BMO Canadian Government Bond ETF
BMO Canadian Equity ETF
BMO US Equity ETF
BMO International Equity ETF
BMO Emerging Markets Equity ETF
BMO Global Infrastructure ETF
BMO Dow Jones Industrial Average ETF
Jones Heward Investment Counsel Inc. (Jones Heward), an operating company within BMO Asset Management, will be the manager of the BMO ETFs.

The BMO Canadian Government Bond ETF has been designed to replicate, to the extent possible, the performance of the Citigroup Canadian Government Bond Index.
The BMO Canadian Equity ETF has been designed to replicate, to the extent possible, the performance of the Dow Jones Canada Index.
The BMO US Equity ETF has been designed to replicate, to the extent possible, the performance of the Dow Jones U.S. Market Index.
The BMO International Equity ETF has been designed to replicate, to the extent possible, the performance of the Dow Jones World Developed ex-U.S. Index.
The BMO Emerging Markets Equity ETF has been designed to replicate, to the extent possible, the performance of the Dow Jones World Emerging Markets Index.
The BMO Global Infrastructure ETF has been designed to replicate, to the extent possible, the performance of the Dow Jones Brookfield Global Infrastructure Index.
The BMO Dow Jones Industrial Average ETF has been designed to replicate, to the extent possible, the performance of the Dow Jones Industrial Average.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in all provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from your financial advisor or from Jones Heward at www.bmo.com/etfs. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
sjhoffman
Newcomer
Newcomer
 
Posts: 9
Joined: 20 Feb 2005 20:36
Location: Toronto

Postby scomac » 14 Feb 2009 13:09

Just wait until Investors' Group launches their proprietary version of ETFs. :wink:
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
User avatar
scomac
Gold Ring
Gold Ring
 
Posts: 5284
Joined: 19 Feb 2005 10:47
Location: The Greenbelt

Postby randomwalker » 14 Feb 2009 18:25

I'm sure a few here remember when TD had a handful of ETFs trading in Toronto but euthanized them due to investor lack of interest.
randomwalker
Gold Ring
Gold Ring
 
Posts: 1797
Joined: 14 Apr 2005 20:55

Postby squash500 » 14 Feb 2009 20:05

scomac wrote:Just wait until Investors' Group launches their proprietary version of ETFs. :wink:



Yeah with about a 5% mer per etf :P .
squash500
Silver Ring
Silver Ring
 
Posts: 837
Joined: 26 Dec 2007 22:48

Postby scomac » 14 Feb 2009 20:58

squash500 wrote:
scomac wrote:Just wait until Investors' Group launches their proprietary version of ETFs. :wink:



Yeah with about a 5% mer per etf :P .


No...I would think that 125-150 basis points on top would be about enough to seal the deal. They would even end up being competitive with De Goey at that rate. :wink:
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
User avatar
scomac
Gold Ring
Gold Ring
 
Posts: 5284
Joined: 19 Feb 2005 10:47
Location: The Greenbelt

Postby Doug » 14 Feb 2009 21:30

How much room is there in the Canadian market for ETFs? As mentioned by others, TD ETFs did not do well. ETFs that do not attract a large number of investors are less liquid resulting in larger bid ask spreads.
Doug
Silver Ring
Silver Ring
 
Posts: 732
Joined: 02 Aug 2008 10:10

Postby scomac » 14 Feb 2009 21:53

Doug wrote:How much room is there in the Canadian market for ETFs?


Lots if they come with [s]hand holding[/s] free advice attached. :wink:
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
User avatar
scomac
Gold Ring
Gold Ring
 
Posts: 5284
Joined: 19 Feb 2005 10:47
Location: The Greenbelt

Postby Shakespeare » 04 Jun 2009 10:56

BMO Financial Group announces the launch of BMO Exchange Traded Funds (ETFs)
BMO ETFs (www.bmo.com/etfs)

- BMO Canadian Government Bond Index ETF (BGB) has been designed to
replicate, to the extent possible, the performance of the Citigroup
Canadian Government Bond Index.
- BMO Dow Jones Canada Titans 60 Index ETF (BCA) has been designed to
replicate, to the extent possible, the performance of the Dow Jones
Canada Titans 60 Index.
- BMO US Equity Index ETF (BUE) has been designed to replicate, to the
extent possible, the performance of the Dow Jones U.S. Large-Cap
Index (CAD hedged).
- BMO Dow Jones DiamondsSM Index ETF (BDJ) has been designed to
replicate, to the extent possible, the performance of the Dow Jones
Industrial Average (CAD hedged).
“Never appeal to a man's better nature. He may not have one. Invoking his self-interest gives you more leverage.” -- R.A. Heinlein, Time Enough for Love.
User avatar
Shakespeare
Diamond Ring
Diamond Ring
 
Posts: 18629
Joined: 16 Feb 2005 00:25
Location: Lethbridge, AB

Postby Bylo Selhi » 04 Jun 2009 12:18

Just in time to compete with [s]Dominic[/s]Donald's folly :shock: :roll:
Sedulously eschew obfuscatory hyperverbosity and prolixity.
User avatar
Bylo Selhi
Diamond Ring
Diamond Ring
 
Posts: 23130
Joined: 16 Feb 2005 11:36
Location: Waterloo, ON

Postby DanH » 04 Jun 2009 13:07

Bylo Selhi wrote:Just in time to compete with [s]Dominic[/s]Donald's folly :shock: :roll:


Those Manu index funds cannot be puchased as stand alone funds. They will instead by included as part of Manulife's fund of fund products. :?
DanH
Gold Ring
Gold Ring
 
Posts: 1618
Joined: 21 Feb 2005 15:25

Postby Bylo Selhi » 04 Jun 2009 13:15

So why didn't they use ETFs, e.g. XIU (17bp), VTI (9bp) and CBO (25bp)? They'll need to attract a lot of assets in Simplicity, especially since "We look at them to make up about 20 per cent of the overall equity weighting in the portfolios" before they can index in-house at lower cost.
Sedulously eschew obfuscatory hyperverbosity and prolixity.
User avatar
Bylo Selhi
Diamond Ring
Diamond Ring
 
Posts: 23130
Joined: 16 Feb 2005 11:36
Location: Waterloo, ON

Postby squash500 » 04 Jun 2009 15:33

DanH wrote:
Bylo Selhi wrote:Just in time to compete with [s]Dominic[/s]Donald's folly :shock: :roll:


Those Manu index funds cannot be puchased as stand alone funds. They will instead by included as part of Manulife's fund of fund products. :?


ISTM like another bad product for the investor :) . I'm not sure which is worse? Wrap accounts or dsc funds :? ?
squash500
Silver Ring
Silver Ring
 
Posts: 837
Joined: 26 Dec 2007 22:48

Postby queerasmoi » 04 Jun 2009 16:12

squash500 wrote: ISTM like another bad product for the investor :) . I'm not sure which is worse? Wrap accounts or dsc funds :? ?


How about a DSC balanced fund that is a wrap of ETFs? ;)
queerasmoi
Gold Ring
Gold Ring
 
Posts: 2718
Joined: 27 May 2008 16:25

Postby Shakespeare » 26 Oct 2009 10:23

BMO Financial Group Announces Significant Expansion of BMO Exchange Traded Funds (ETFs)
New BMO ETF Products (www.bmo.com/etfs)

- BMO Short Federal Bond Index ETF (ZFS)
- BMO Short Provincial Bond Index ETF (ZPS)
- BMO Short Corporate Bond Index ETF (ZCS)
- BMO High Yield US Corporate Bond Hedged to CAD ETF (ZHY)
- BMO S&P/TSX Equal Weight Banks Index ETF (ZEB)
- BMO S&P/TSX Equal Weight Oil & Gas Index ETF (ZEO)
- BMO International Equity Hedged to CAD Index ETF (ZDM)
- BMO Emerging Markets Equity Index ETF (ZEM)
- BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index
ETF (ZMT)

Existing ETFs

- BMO Canadian Government Bond Index ETF (ZGB) has been designed to
replicate, to the extent possible, the performance of the Citigroup
Canadian Government Bond Index.

- BMO Dow Jones Canada Titans 60 Index ETF (ZCN) has been designed to
replicate, to the extent possible, the performance of the Dow Jones
Canada Titans 60 Index.

- BMO US Equity Hedged to CAD Index ETF (ZUE) has been designed to
replicate, to the extent possible, the performance of the Dow Jones
U.S. Large-Cap Index (CAD hedged).

- BMO Dow Jones Industrial Average Hedged to CAD Index ETF (ZDJ) has
been designed to replicate, to the extent possible, the performance
of the Dow Jones Industrial Average (CAD hedged).

Well, as a consumer it's nice that they're trying. But I really doubt that they can break into this market.
“Never appeal to a man's better nature. He may not have one. Invoking his self-interest gives you more leverage.” -- R.A. Heinlein, Time Enough for Love.
User avatar
Shakespeare
Diamond Ring
Diamond Ring
 
Posts: 18629
Joined: 16 Feb 2005 00:25
Location: Lethbridge, AB

Postby Norbert Schlenker » 26 Oct 2009 11:07

BMO S&P/TSX Equal Weight Banks Index ETF (ZEB)

MER 0.55%

You have got to be kidding.
Nothing can protect people who want to buy the Brooklyn Bridge.
User avatar
Norbert Schlenker
Gold Ring
Gold Ring
 
Posts: 6547
Joined: 16 Feb 2005 10:56
Location: An Argument Surrounded By Water

Postby bwalter » 26 Oct 2009 12:49

Norbert Schlenker wrote:
BMO S&P/TSX Equal Weight Banks Index ETF (ZEB)

MER 0.55%

You have got to be kidding.

That certainly does seem like a high price to pay to hold 5 stocks and keep them equally weighted.
bwalter
Silver Ring
Silver Ring
 
Posts: 163
Joined: 17 Sep 2009 18:19

Postby country squire » 26 Oct 2009 21:49

bwalter wrote:
Norbert Schlenker wrote:
BMO S&P/TSX Equal Weight Banks Index ETF (ZEB)

MER 0.55%

You have got to be kidding.

That certainly does seem like a high price to pay to hold 5 stocks and keep them equally weighted.


Make that 6. Can't forget National Bank.
User avatar
country squire
Newcomer
Newcomer
 
Posts: 7
Joined: 23 Oct 2009 19:48

Postby Shakespeare » 26 Oct 2009 21:59

country squire wrote:Make that 6. Can't forget National Bank.
Yep.
“Never appeal to a man's better nature. He may not have one. Invoking his self-interest gives you more leverage.” -- R.A. Heinlein, Time Enough for Love.
User avatar
Shakespeare
Diamond Ring
Diamond Ring
 
Posts: 18629
Joined: 16 Feb 2005 00:25
Location: Lethbridge, AB

Postby ockham » 26 Oct 2009 22:40

I don't understand the obsession with currency hedging. What BMO could have offered was something we actually need, inexpensive Canadian domiciled non-currency hedged foreign market ETFs. Too bad.
Though the dogs may bark, the caravan moves on.
ockham
Silver Ring
Silver Ring
 
Posts: 989
Joined: 04 Apr 2006 21:50
Location: The Prairies

Postby bwalter » 26 Oct 2009 22:51

country squire wrote:
bwalter wrote:
Norbert Schlenker wrote:
BMO S&P/TSX Equal Weight Banks Index ETF (ZEB)

MER 0.55%

You have got to be kidding.

That certainly does seem like a high price to pay to hold 5 stocks and keep them equally weighted.


Make that 6. Can't forget National Bank.

Guess I need to learn to count. :lol:
bwalter
Silver Ring
Silver Ring
 
Posts: 163
Joined: 17 Sep 2009 18:19

Postby Peculiar_Investor » 26 Oct 2009 22:58

ockham wrote:I don't understand the obsession with currency hedging. What BMO could have offered was something we actually need, inexpensive Canadian domiciled non-currency hedged foreign market ETFs. Too bad.

Contrast that with what they did offer, something they need, fee generating for them, taking advantage to the rush to ETFs and all the financial press coverage.
Imagefiniki, the Canadian financial wiki, a collaborative enterprise by the members of FWF. Add your wisdom, help fix our typos!

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Gold Ring
Gold Ring
 
Posts: 4863
Joined: 01 Mar 2005 15:52
Location: Calgary

Postby queerasmoi » 27 Oct 2009 01:51

Short corporate bond ETF could be interesting... compare to Claymore's CBO. MER of 30 bp (CBO is 25), similar duration but more holdings (43 for ZCS vs 25 for CBO). Is the extra diversity worth 5 bp?

ZHY, "High Yield US Corporate Bond Hedged to CAD", is actually QUITE a unique offering. In fixed-income it makes much more sense to me to throw in currency hedging for foreign investments than with equities. So even at a steeper 65 bp it's not really got any ETF competitors. BUT before you get too excited, the holdings consist of 101.29% JNK (a SPDR ETF in the US) and -1.29% cash (??).

I would be concerned, if ZHY merely holds JNK, that the 15% withholding tax on distributions will be locked up internally, meaning that if I hold ZHY in a tax-sheltered account I will lose out on that 15% completely (whereas in RRSP, JNK would be subject to no withholding).
queerasmoi
Gold Ring
Gold Ring
 
Posts: 2718
Joined: 27 May 2008 16:25

Next

Return to Stocks, Bonds, ETFs, Funds, REITS and More

Who is online

Users browsing this forum: Pickles, Webber22 and 8 guests