Strategy
Commodity ETFs

New BMO ETFs – Launch Summary

Oct. 28, 2024

Built for all investors, BMO ETFs are proud to have changed investing for the better. We focus on listening to our partners to develop innovative ETFs that address real investor needs.

Quality Factor ETFs: Expanding BMO Quality Factor Suite

NEW! ZIQ – BMO MSCI EAFE High Quality Index ETF

Quality Portfolio Completion

Why Buy?

  • Europe, Australasia, and the Far East (EAFE) exposure with a quality screen through the index based on three fundamental variables: high return on equity, stable year-over-year earnings growth, and low financial leverage.
  • An international equity completion tool to diversify portfolios with sufficient North American exposure.
  • Top sectors include Health Care, Industrials, and Consumer Staples to diversify portfolios with sufficient U.S. technology exposure.1
  • Can complement existing factor exposures to provide diversification among a portfolio of factor strategies.
  • Quarterly Distribution
  • Management Fee: 0.35%
  • Risk2 Rating: Medium 

For more on the Quality Methodology please visit: Quality Whitepaper

Structured Outcome ETFs

Buffer ETFs

ZOCT – BMO US Equity Buffer Hedged to CAD ETF – October 

ZJAN – BMO US Equity Buffer Hedged to CAD ETF – January 

ZAPR – BMO US Equity Buffer Hedged to CAD ETF – April 

ZJUL – BMO US Equity Buffer Hedged to CAD ETF – July

A Shock Absorber for Your Portfolio

Why Buy?

  • Buffer ETFs, help you participate in the upside to a pre-determined level or cap with a buffer zone to mitigate losses (-15% downside protection if held from inception to the end of the Target Outcome Period)3
  • Have the potential to enjoy a smoother investment experience and know your structured outcomes prior to investing
  • When the underlying reference ETF pays a dividend, it flows through the Buffer ETF directly to unitholders. Dividends are not subject to the downside buffer or the price cap
  • BMO Buffer ETFs invest in the BMO S&P 500 Hedged to CAD Index ETF (ticker: ZUE)3 which can complement your core equity positions while mitigating risk.
  • Quarterly Distributions
  • Management Fee: 0.65%
  • Risk2 Rating: Medium 

Get Comfort When You Need it the Most: Four ETFs with a built-in buffer to help mitigate losses, and potentially provide you with greater certainty over time. Read more from our Buffer ETFs Sales Aid.


Accelerator ETFs

ZUEA– BMO US Equity Accelerator Hedged to CAD ETF

Dial Up Your Equity Returns

Why Buy?

  • Designed to offer approximately 2x the price return on the S&P 500 hedged to CAD, to a cap of 8% (before fees taxes and expenses), with single exposure4 on the downside over a 3-month period.
  • Accelerator ETFs reset every three months to continue capturing upside to the cap.
  • Quarterly Distributions
  • Management Fee: 0.65%
  • Risk2 Rating: Medium

ZEBA – BMO Canadian Banks Accelerator ETF

Dial Up Your Equity Returns

Why Buy?

  • Offers approximately 2x the price return on Canadian banks, to a cap of 8% (before fees taxes and expenses) with single exposure on the downside, over a 3-month period.
  • Accelerator ETFs reset every three months to continue capturing upside to the cap.
  • Monthly Distributions
  • Management Fee: 0.65%
  • Risk2 Rating: Medium

For more on our Accelerator ETFs please visit: Dial Your Equity Returns Up featuring BMO’s ZUEA and ZEBA ETFs.

Gold ETFs

ZGLD‡ / ZGLH / ZGLD.U – BMO Gold Bullion ETF

Get the Gold You Really Want

Why Buy?

  • Inflation Hedge & Haven: Gold tends to outperform during periods of global economic uncertainty7
  • Diversification: Historically, precious metals have a lower correlation5 to traditional asset classes7
  • Return Potential: Demand for physical gold is on the rise, sitting higher than its 10-year average6
  • Cost Efficient: Competitive management fees for physical gold trusts that trades over the TSX7
  • Ease of Access: Investors do not have to handle and or store physical gold. BMO Gold ETFs provide exposure to the price of Gold Bullion and can be bought and sold on the TSX on any open trading day
  • Locally Housed in Canada: Physical gold is held in a local BMO vault that is audited periodically
  • Currency Exposure Management: Investors can get exposure to physical gold via three different ETF options. ZGLD is purchased in Canadian dollars, ZGLH is hedged to the Canadian dollar and ZGLD.U is purchased in U.S dollars.
  • Annual Distribution
  • Management Fee: 0.20%
  • Risk2 Rating: Medium

For more on investing in Gold ETFs, have a look at the Gold Sales Aid.

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1 As of September 30, 2024

2 All investments involve risk. The value of an ETF can go down as well as up and you could lose money. The risk of an ETF is rated based on the volatility of the ETF’s returns using the standardized risk classification methodology mandated by the Canadian Securities Administrators. Historical volatility doesn’t tell you how volatile an ETF will be in the future. An ETF with a risk rating of ​“low” can still lose money. For more information about the risk rating and specific risks that can affect an ETF’s returns, see the BMO ETFs’ prospectus.

3 BMO Buffer ETFs seeks to provide income and appreciation that match the return of a Reference Index up to a cap (before fees, expenses and taxes), while providing a buffer against the first 15% (before fees, expenses and taxes) of a decrease in the Reference Index over a period of approximately one year, starting from the first business day of the stated outcome period. Provided investors remain invested throughout the duration of the Target Outcome Period. The Target Outcome Period for ZOCT is approximately one year from the first business day of October of each year to on or about the last business day of September of that year. The Target Outcome Period for ZJAN, is approximately one year from the third Friday of January of each year to on or about the third Friday of January of the following year. The Target Outcome Period for ZAPR, is approximately one year from the first business day of April of each year to on or about the last business day of March of the following year. The Target Outcome Period for ZJUL is approximately one year from the first business day of July of each year to on or about the last business day of June of that year.

4 Single exposure is approximate and not exact.

5 A statistical measure of how two securities move in relation to one another. Positive correlation indicates similar movements, up or down together, while nega- tive correlation indicates opposite movements (when one rises, the other falls).

6 World Gold Council, Gold Demand Trends Q2 2024.

7 Source: BMO Global Asset Management, Bloomberg, January 31st 2024 Changes in rates of exchange may also reduce the value of your investment.

An investor that purchases Units of a Structured Outcome ETF other than on the first day of a Target Outcome Period and/​or sells Units of a Structured Outcome ETF prior to the end of a Target Outcome Period may experience results that are very different from the target outcomes sought by the Structured Outcome ETF for that Target Outcome Period. Both the cap and, where applicable, the buffer are fixed levels that are calculated in relation to the market price of the applicable Reference ETF and a Structured Outcome ETF’s NAV (as Structured herein) at the start of each Target Outcome Period. As the market price of the applicable Refer- ence ETF and the Structured Outcome ETF’s NAV will change over the Target Outcome Period, an investor acquiring Units of a Structured Outcome ETF after the start of a Target Outcome Period will likely have a different return potential than an investor who purchased Units of a Structured Outcome ETF at the start of the Target Outcome Period. This is because while the cap and, as applicable, the buffer for the Target Outcome Period are fixed levels that remain constant through- out the Target Outcome Period, an investor purchasing Units of a Structured Outcome ETF at market value during the Target Outcome Period likely purchase Units of a Structured Outcome ETF at a market price that is different from the Structured Outcome ETF’s NAV at the start of the Target Outcome Period (i.e., the NAV that the cap and, as applicable, the buffer reference). In addition, the market price of the applicable Reference ETF is likely to be different from the price of that Reference ETF at the start of the Target Outcome Period. To achieve the intended target outcomes sought by a Structured Outcome ETF for a Target Outcome Period, an investor must hold Units of the Structured Outcome ETF for that entire Target Outcome Period.

The Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by the Manager. 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 the Manager. The ETF is not sponsored, endorsed, sold or pro- moted 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.

The ETF referred to herein is not sponsored, endorsed, or promoted by MSCI and MSCI bears no liability with respect to the ETF or any index on which such ETF is based. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI has with the Manager and any related ETF.

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, fluc- tuate 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.

This material is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/​or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.

“BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence. 

Published: October 2024.