According to a press release, the new ETFs fulfill a strong market demand for income generating investment products with a range of risk levels. They are designed to meet the needs of investors who are looking for investment products that provide access to potential income in times of market instability.
A study from BMO, conducted by Leger Marketing, found that almost three-quarters of Canadians want to generate more income from their investments.
The following new ETFs begun trading on the Toronto Stock Exchange:
- BMO Canadian Dividend ETF (ZDV) – Provides exposure to a yield-weighted portfolio of Canadian dividend-paying stocks;
- BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF (ZWA) – Provides exposure to the 30 U.S. Blue Chip companies that make up the Dow Jones Industrial Average, while potentially earning call option premiums;
- BMO Covered Call Utilities ETF (ZWU) – Allows investors to access a portfolio of widely recognized Canadian utilities companies, which include telecommunications and pipeline companies, while potentially earning call option premiums; and
- BMO Low Volatility Canadian Equity ETF (ZLB) – Seeks to provide long term capital growth, with less volatility than the broad market, through exposure to a weighted portfolio of lower beta Canadian stocks.