BMO Investments, Invesco launch new ETFs

BMO Investments Inc. and Invesco launched new ETFs that began trading on the TSX Tuesday.

BMO’s series of actively managed ETFs include the BMO Global Strategic Bond Fund, BMO Global Multi-Sector Bond Fund, BMO Core Plus Bond Fund and BMO Women in Leadership Fund.

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With an active manager, the ETFs allow investors to look beyond their borders and take advantage of global opportunities in the current environment of rising interest rates and volatile yields, said Kevin Gopaul, head of BMO Global Asset Management Canada, in a release.

The new funds are listed below, and are all ETF series.

BMO Global Strategic Bond Fund—provides a multi-sector approach to global credit investing, including U.S. investment grade and global high yield bonds and debentures, and emerging market debt, designed to achieve better long-term risk-adjusted returns for investors.

BMO Global Multi-Sector Bond Fund—designed to invest around the world in fixed income securities, including government bonds, securitized debt, investment grade bonds, high yield bonds and emerging market debt, and will rotate between these sectors when the assessment of value changes.

BMO Core Plus Bond Fund—a core Canadian bond strategy with the ability to invest in foreign bonds, emerging market debt and high yield bonds to enhance yield and provide diversification benefits.

BMO Women in Leadership Fund—consists of a portfolio of companies with both gender-diverse leadership and a commitment to gender diversity.

Invesco seeks to replicate S&P 500 Equal Weight Index

The Invesco S&P 500 Equal Weight Index ETF provides equal-weight exposure to the companies that make up the S&P 500 Index, the company said in a release.

“One of the challenges investors face in tracking a market-capitalization-weighted index is that the index may have concentration-risk issues,” said Jasmit Bhandal, head of ETF product strategy and development with Invesco Canada, in a release.

With the S&P 500 heavily concentrated with the FAANG companies (Facebook, Apple, Amazon, Netflix and Alphabet, or Google), the ETF will help investors avoid overweighting, Bhandal said. The fund tracks the S&P 500 Equal Weight Index, which weights each company at 0.2% at each quarterly rebalancing.

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