- Launching ESG ETFs, including the first ESG asset allocation ETF in Canada
- Adding to income solutions with additional yield ETFs
- BMO survey shows 78 per cent of high income and high net worth investors are ESG leaning, with 22 per cent actively investing in ESG
TORONTO, Jan. 21, 2020 /CNW/ - BMO Asset Management Inc. today announced the launch of seven ESG (environment, social and governance) ETFs, including the first balanced ESG ETF in Canada.
"A recent BMO survey shows investors recognize the financial benefit of investing with an ESG lens and are increasingly looking for solutions that align with both their financial and social values." said Kevin Gopaul, Global Head of ETFs, BMO Global Asset Management. "As an asset manager we have a responsibility to drive and encourage positive change, from active ownership and ESG integration across investments, to product development. This launch of ESG ETFs delivers the full range of solutions and an all-in-one-basket across broad markets that aligns with BMO's responsible investing strategy."
Initial results of BMO Asset Management's ESG Beliefs and Behaviors Survey* found 78 per cent of high income and high net worth investors are ESG leaning, with 22 per cent actively investing in ESG and 72 per cent strongly agreeing that companies can have positive impact and make a profit. Further, 68 per cent of the respondents strongly agreed that companies should be held accountable for good management and sustainable business practices.
BMO Asset Management Inc.'s new ETFs include:
BMO Balanced ESG ETF (ZESG)
The first ESG asset allocation ETF in Canada, providing a one ticket low cost solution that includes both major equity markets and fixed income securities through a balanced asset allocation of 60 per cent equity and 40 per cent fixed income exposure.
BMO MSCI Global ESG Leaders Index ETF (ESGG)
BMO MSCI Canada ESG Leaders Index ETF (ESGA)
BMO MSCI EAFE ESG Leaders Index ETF (ESGE)
BMO MSCI USA ESG Leaders Index ETF (ESGY)
These ETFs deliver ESG exposure by following the best in class approach of the MSCI ESG Leaders Indexes, while capturing market returns, by targeting the top 50 per cent ESG rated equities within sectors and industries, while excluding severe controversies and industries such as alcohol, gambling, tobacco, and weapons.
BMO ESG Corporate Bond Index ETF (ESGB)
BMO ESG US Corporate Bond Hedged to CAD Index ETF (ESGF)
These ETFs invest in investment grade corporate bond fixed income issuers that have the highest MSCI ESG Ratings.
BMO Global High Dividend Covered Call ETF (ZWG)
This ETF is a yield solution investing in high dividend equities, utilizing some ESG integration and building off our existing covered call methodology.
BMO Premium Yield ETF (ZPAY, ZPAY.U, ZPAY.F)
This ETF is a yield solution investing in a portfolio of large cap U.S. equities combined with derivative strategies to determine equity entry and exit strategies.
The offering of all of the new ETFs has closed, and they will begin trading on the Toronto Stock Exchange today.
The BMO ETFs or securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. ("MSCI"), and MSCI bears no liability with respect to any such BMO ETFs or securities or any index on which such BMO ETFs or securities are based. The prospectus of the BMO ETFs contains a more detailed description of the limited relationship MSCI has with BMO Asset Management Inc. and any related BMO ETFs.
* BMO Asset Management ESG Beliefs and Behaviors Survey (Top Line Results)
Fielded in November and December, the study is based upon 2,020 high income and high net worth working and retired individuals between the ages of 30-75 (household income of $150,000 and higher and net worth of $1 million or more). The sample was evenly divided between the US and Canada. The data was collected using an online data collection methodology. The sample size has a maximum sampling error of +/- 2.2 percentage points. A full report on the survey findings will be completed in the coming weeks.
About BMO Exchange Traded Funds (ETFs)
Established in May 2009, BMO Financial Group's ETF business is a leading ETF provider in Canada. BMO ETFs provide Canadian investors with broader choices and greater access to an innovative portfolio of investment products.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $852 billion as of October 31, 2019, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
For further information: For News Media Inquiries: Orli Giroux Namian, [email protected], (416) 867-3996; Internet: www.bmo.com, Twitter: @BMOMedia