The Bank of Montreal has launched 10 ETFs on the Toronto Stock Market, adding target maturity and commodity funds to its product range.
The firm offers four Corporate Bond Target Maturity ETFs, with end dates of 2013, 2015, 2020 and 2025. All will hold a combination of BMO corporate bond ETFs that average out to match the target date, gradually transitioning to short term holdings as the maturity approaches.
The BMO 2020 Corporate Bond Target Maturity ETF, for example, is currently weighted 82% in the company's Mid and 18% in its Long Corporate Bond Index ETFs, while the 2013 ETF is entirely invested in BMO's Short Corporate Bond Index ETF.
BMO says these funds are the first of their kind from a Canadian issuer, as is its Covered Call Canadian Banks ETF. The company's Monthly Income ETF completes the six additions to its income-focused offering.
BMO Asset Management CEO Rajiv Silgardo says the funds were developed to meet investor demands for increased yield options.
Meanwhile, the launch of four BMO Energy, Agriculture, Precious Metals and Base Metals Commodities Index ETFs gives the company a commodities ETF platform for the first time. Each fund tracks the applicable S&P GSCI index, investing in futures contracts and applying contract rolling to optimise performance.
The development augments BMO's ETF holding to a total of 40 funds. Silgardo says: "In just over 18 months, our ETF business has grown dramatically. We've launched 40 funds and these funds currently have more than $1.5bn in assets under management."
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