- New Buffer ETF offers downside protection for
investors
TORONTO, April 1,
2024 /CNW/ - BMO Asset Management Inc. (BMOAM Inc.),
the manager of the BMO ETFs, today announced the launch of BMO
US Equity Buffer Hedged to CAD ETF – April.
BMO US Equity Buffer Hedged to CAD ETF – April (Cboe CA: ZAPR)
has closed its initial offering of exchange traded units and today
is listed and trading on Cboe Canada Inc.
BMO US Equity Buffer Hedged to CAD ETF –
April (Cboe CA: ZAPR) seeks to provide unitholders with
income and appreciation (before fees, expenses and taxes) that
matches to the extent possible the return of an index designed to
measure the large-cap segment of the US equity market (the
"Reference Index") up to a cap (before fees, expenses and
taxes), while providing a buffer against the first 15 per cent
(before fees, expenses and taxes) of a decrease in the market price
of the Reference Index, over a period of 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, referred to
as the Target Outcome Period.
About Structured Outcome ETFs
BMO US Equity Buffer Hedged to CAD ETF – April is the newest
addition to BMO ETFs' Structured Outcome ETFs. Collectively, BMO
Canadian Banks Accelerator ETF, BMO US Equity Accelerator Hedged to
CAD ETF, BMO US Equity Buffer Hedged to CAD ETF – January, BMO US
Equity Buffer Hedged to CAD ETF – April, and BMO US Equity Buffer
Hedged to CAD ETF – October are referred to as the "Structured
Outcome ETFs". The Structured Outcome ETFs aim to provide investors
with a return over a specified target outcome period (each, a
"Target Outcome Period").
An investor that purchases units of a Structured Outcome ETF
other than on the first day of a Target Outcome Period and/or
redeems 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 such Structured
Outcome ETF for that 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.
Please refer to the Structured Outcome ETFs' website
(https://www.bmogam.com/ca-en/products/structured-outcomes/) for
important information about the Structured Outcome ETFs' Target
Outcome Period start and end dates and the applicable cap and
buffer.
Further information can be found at BMO ETF Centre.
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, fluctuate 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.
®/™Registered trademarks/trademark of Bank of Montreal, used under licence.
About BMO Exchange Traded Funds (ETFs)
BMO Exchange
Traded Funds has been an ETF provider in Canada for more
than 12 years, with over 100 strategies, over 23 per cent market
share in Canada1, and $97.5 billion in
assets under management. BMO ETFs are designed to stay ahead of
market trends and provide compelling solutions to help advisors and
investors. This includes a comprehensive suite of ETFs developed
in Canada for Canadians, such as cost effective core
equity ETFs following market leading indexes, and a broad range of
fixed income ETFs; solution-based ETFs responding to client demand;
and innovation with smart beta ETFs, as well as combining active
and passive investing with ETF series of active mutual funds.
1Morningstar, December 2023
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of
$1.3 trillion as of October 31, 2023. Serving customers 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 over 13 million customers 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 inclusive
society.
SOURCE BMO Financial Group