BMO Reduces Fees on Select ETFs and Updates Risk Ratings
- Lower fees on core bond and gold equity exposures aim to deliver greater value to investors; risk rating updates reflect annual review
TORONTO, Jan. 23, 2026 /CNW/ - BMO Asset Management Inc. (BMOAM), the manager of the BMO ETFs, is making it easier and more cost-effective for Canadians to invest and today announced it is reducing the annual management fee on select BMO ETFs.
Effective after the close of business on January 23, 2026, management fees will be reduced on three ETFs as follows:
Name of BMO ETF | Series of | Ticker | Previous | New Annual |
BMO Equal Weight Global Gold Index ETF | CAD Units | ZGD | 0.55 | 0.40 |
BMO Junior Gold Index ETF | CAD Units | ZJG | 0.55 | 0.40 |
BMO Government Bond Index ETF | CAD Units | ZGB | 0.15 | 0.09 |
"Gold's surge in 2025 reinforced its role as a portfolio diversifier. By reducing fees, we're helping investors add exposure to gold equities with greater cost efficiency," said Sara Petrcich, Head of ETFs & Alternatives, BMO Global Asset Management. "This move reinforces our commitment to putting investors first and empowering them to achieve long-term financial progress."
BMOAM also announced changes to the risk ratings for certain BMO ETFs. These changes will be reflected in the applicable ETF Facts as part of the renewal of the simplified prospectus for the BMO ETFs, which is expected to be filed on or about January 23, 2026.
These risk rating changes are based on the standardized risk classification methodology mandated by the Canadian Securities Administrators and an annual review conducted by BMOAM to determine the risk level of the BMO ETFs.
Effective immediately, the risk ratings for the following BMO ETFs have changed as set out below:
Name of BMO ETF | Series of | Ticker | Previous | New Risk |
BMO Covered Call Canadian Banks ETF | USD Units | ZWB.U | High | Medium to High |
BMO Long-Term US Treasury Bond Index ETF | Hedged Units | ZTL.F | Low to Medium | Medium |
BMO Low Volatility International Equity ETF | CAD Units | ZLI | Medium | Low to Medium |
BMO Low Volatility US Equity ETF | CAD Units | ZLU | Medium | Low to Medium |
BMO MSCI USA High Quality Index ETF | Hedged Units | ZUQ.F | Medium to High | Medium |
BMO S&P US Mid Cap Index ETF | CAD Units | ZMID | Medium to High | Medium |
BMO S&P US Small Cap Index ETF | Hedged Units | ZSML.F | Medium to High | High |
USD Units | ZSML.U | Medium to High | High | |
BMO SPDR Materials Select Sector Index ETF | Hedged Units | ZXLB.F | Medium to High | Medium |
BMO SPDR Real Estate Select Sector Index ETF | CAD Units | ZXLR | Medium to High | Medium |
Hedged Units | ZXLR.F | Medium to High | Medium |
BMOAM also announced that effective immediately the frequency of distribution in respect of BMO Government Bond Index ETF is changing from quarterly to monthly.
The BMO MSCI USA High Quality Index 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.
The applicable indices are products of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and have 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 BMO S&P US Mid Cap Index ETF and the BMO S&P US Small Cap Index ETF are 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.
The Select Sector SPDR® Trust consists of eleven separate investment portfolios (each a "Select Sector SPDR® ETF" or an "ETF" and collectively the "Select Sector SPDR® ETFs" or the "ETFs"). Each Select Sector SPDR® ETF is an "index fund" that invests in a particular sector or group of industries represented by a specified Select Sector Index. The companies included in each Select Sector Index are selected on the basis of general industry classification from a universe of companies defined by the S&P 500®. The investment objective of each ETF is to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in a particular sector or group of industries, as represented by a specified market sector index.
The S&P 500®, SPDRs®, and Select Sector SPDRs® are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use. The stocks included in each Select Sector Index were selected by the compilation agent. Their composition and weighting can be expected to differ to that in any similar indexes that are published by S&P.
Commissions, management fees and expenses may be associated with investments in exchange-traded funds. Please read the ETF Facts or simplified 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 simplified prospectus. All investments involve risk. The value of an exchange-traded fund (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.
BMO ETFs are managed by BMO Asset Management Inc., an investment fund manager, a portfolio manager, and a separate legal entity from Bank of Montreal.
"BMO (M-bar roundel symbol)" is a registered trademark of Bank of Montreal, used under licence.
Further information about BMO ETFs can be found at www.bmogam.com.
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.5 trillion as of October 31, 2025. Serving clients 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 approximately 13 million clients 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 stronger communities.
SOURCE BMO Financial Group
Media Contacts: Aaron Sobeski, Toronto, [email protected], (416) 867-3996
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