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Popular BMO ETFs – Now Available as Mutual Funds

Advisors can now access some of our strategies as mutual funds: including the BMO Canadian Banks ETF Fund, the BMO Global Quality ETF Fund and the BMO Global Enhanced Income Fund.

June 2022

Unique New Strategies Built from Our ETF Suite

Our mission is simple—we aim to provide all Advisors with access to compelling investment strategies. We want you, and your clients, to feel confident in a product shelf that’s able to offer solutions for the full market cycle.

BMO Canadian Banks ETF Fund: A Simple Way to Access Canadian Bank Stocks

The BMO Canadian Banks ETF Fund is a one-ticket solution designed to provide a pure exposure to the “big six” Canadian banks. It can invest up to 100% of its assets into the BMO Equal Weight Banks Index ETF (Ticker: ZEB), giving you access to a basket of large cap Financials that are central to the Canadian economy. Sales AidReasons to Own Canadian Bank-Focused Mutual Funds

Fund Benefits

  • Dividend Growth: All of the holdings have a long history of dividend payouts and raises.
  • Size & Stability: The Canadian banking system is renowned for its stability, earnings and resiliency during an economic crisis.
  • Equal Weight: The portfolio is allocated evenly to all six banks. Canadian Banks have generally rewarded investors over the long term with better returns than the broad Canadian equity market.1
  • Cost Efficiency: Our professional management team executes buy and sell orders in bulk, which reduces trading costs relative to what an Advisor might spend if they built the portfolio themselves.
  • Low-Cost Solution: F Series MER at 0.28% and Advisor Series MER at 1.41%. (Management Expense Ratio (MER) is estimated as Fund is less than one year old.)

Top Holdings*

Source: Morningstar Direct, as of April 30, 2022.

*BMO Canadian Banks ETF Fund uses the same investment strategy as BMO Equal Weight Banks Index ETF. The portfolio holdings are subject to change without notice. They are not recommendations to buy or sell any particular security.

Fund Codes

Series Fund Code MER*
Advisor Series BMO99262 1.41%
T6 BMO34262 1.41%
Series F BMO95262 0.28%
F6 BMO36262 0.28%

*Management Expense Ratio (MER) is estimated as Fund is less than one year old.



BMO Global Quality ETF Fund

The BMO Global Quality ETF Fund is a global equity mandate that seeks to invest in high-quality companies by allocating up to 100% of assets to the BMO MSCI All Country World Index ETF (Ticker: ZGQ). This fund selects securities that have sustainable competitive advantages to provide access to stable growth potential to investors. Sales Aid

Fund Benefits

  • Financial Strength: Aims to identify quality growth stocks based on three criteria: high return on equity (ROE), stable year-over-year earnings growth and low financial leverage.
  • Additional Upside: The focus on quality is intended to improve risk-adjusted returns over the longer term, earning investors a premium over the broad market.
  • Portfolio Efficiency: Single-ticket access to a basket of high-quality global companies.
  • Currency Exposure: Benefits from local currency appreciation.
  • Low-Cost Solution: F Series MER at 0.51% and Advisor Series MER at 1.64%. (Management Expense Ratio (MER) is estimated as Fund is less than one year old.)

Sector Allocation


Geographic Allocation

Top Holdings

Apple Inc 6.21%
Microsoft Corp 5.15%
Meta Platforms Inc - Class A 3.41%
Nvidia Corp 3.38%
Taiwan Semiconductor - SpAdr 3.01%
Johnson & Johnson 3.00%
Unitedhealth Group Inc 2.65%
Alphabet Inc - Class A 2.44%
Alphabet Inc - Class C 2.36%
VISA Inc - Class A Shares 2.33%

Source: Morningstar Direct, as of April 30, 2022. The portfolio holdings are subject to change without notice and only represent a small percentage of portfolio holdings. They are not recommendations to buy or sell any particular security.

Fund Codes

Series Fund Code MER*
Advisor Series BMO99263 1.64%
T6 BMO34263 1.64%
Series F BMO95263 0.51%
F6 BMO36263 0.51%

*Management Expense Ratio (MER) is estimated as Fund is less than one year old.



BMO Global Enhanced Income Fund

The BMO Global Enhanced Income Fund uses a core and satellite approach, investing in BMO ETFs to provide a balance between higher yields relative to the broader market and upside participation. The portfolio is designed to provide stable monthly income from high-quality dividend assets, as well as from an options overlay that delivers “enhanced dividends.” Sales Aid

Fund Benefits

  • Stable Monthly Cash Flow: The portfolio invests in ETFs that provide access to high dividend income.
  • Adaptability in Changing Markets: By using covered calls, the fund is able to lower the impact of market movements and earn options premia.
  • Upside Participation: The fund’s diversified portfolio composition of global equity ETFs provides the potential for long-term growth.

Core – High Level of Cash from Core Dividend Asset Classes

Core Portfolio % Fund Yield
ZWG - BMO Global High Dividend Covered Call ETF 30.0 6.9
ZWC - BMO Canadian High Dividend Covered Call ETF 15.0 6.0
ZWS - BMO US High Dividend Covered Call Hedged to Cad ETF 13.1 5.9
ZWE - BMO Europe High Dividend Covered Call Hedged to Cad ETF 5.6 6.3
ZWT - BMO Covered Call Technology ETF 3.8 5.3
ZSP - BMO S&P 500 Index ETF 7.5 1.3

Satellite – Ability to Adapt to Changing Market Conditions to Provide Additional Yield or Growth Potential

Satellite % Fund Yield
ZWB - BMO Covered Call Canadian Banks ETF 3.8 5.9
ZWK - BMO Covered Call US Banks ETF 3.8 6.5
ZVC - BMO MSCI Canada Value Index ETF 5.0 2.3
ZUQ.F - BMO MSCI USA High Quality Index ETF 8.8 1.0
ZWU - BMO Covered Call Utilities ETF 3.8 7.3

Source: Morningstar Direct, as of April 30, 2022. For illustration purposes only. Annualized Distribution Yield: The most recent regular distribution, or expected distribution, (excluding additional year end distributions) annualized for frequency, divided by current NAV. The portfolio holdings are subject to change without notice. They are not recommendations to buy or sell any particular security.

Fund Codes

Series Fund Code MER* Front End
Advisor Series BMO99166 1.86% BMO99166
Series T6 BMO34212 1.86% BMO34212
Series F (Fee Based) BMO95166 0.73% BMO95166
Series F6 (Fee Based) BMO36166 0.73% BMO36166

*Management Expense Ratio (MER) is estimated, as Fund is less than one year old.




1 Source: Morningstar Direct. Based on returns from April 30, 2012 to April 30, 2022. Equal weight Canadian banks represented by BMO Equal Weight Banks Index ETF, broad Canadian equity market represented by the S&P/TSX Composite Total Return Index. Index returns do not reflect transactions costs or the deduction of other fees and expenses and it is not possible to invest directly in an Index. Past performance is not indicative of future results.

Advisor Use Only.

This communication is intended for informational purposes only and is not, and should not be construed as, investment and/or tax advice to any individual. Particular investments and/or trading strategies should be evaluated relative to each individual’s circumstances. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment.

The exchange traded funds or securities referred to herein are not sponsored, endorsed or promoted by MSCI, and MSCI bears no liability with respect to any such exchange traded funds or securities or any index on which such exchange traded funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with BMO Asset Management Inc. and related exchange traded funds.

S&P 500® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and “TSX” is a trademark of TSX Inc. These trademarks have been licensed for use by S&P Dow Jones Indices LLC and sublicensed to BMO Asset Management Inc. in connection with BMO S&P 500 Index ETF. ZSP is not sponsored, endorsed, sold or promoted by S&P Dow Jones LLC, S&P, TSX, or their respective affiliates and S&P Dow Jones Indices LLC, S&P, TSX and their affiliates make no representation regarding the advisability of trading or investing in such BMO ETF(s).

Commissions, management fees and expenses (if applicable) may be associated with investments in mutual funds and exchange traded funds (ETFs). Trailing commissions may be associated with investments in mutual funds. Please read the fund facts, ETF Facts or prospectus of the relevant mutual fund or ETF before investing. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

For a summary of the risks of an investment in BMO Mutual Funds or BMO ETFs, please see the specific risks set out in the prospectus of the relevant mutual fund or ETF. 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 Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate entity from Bank of Montreal. BMO ETFs are managed and administered by BMO Asset Management Inc., an investment fund manager and portfolio manager and separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc. and BMO Investments Inc.

®/™Registered trademarks/trademark of Bank of Montreal, used under licence.

* As compared to an investment that generates an equivalent amount of interest income.

®/™Registered trade-marks/trade-mark of Bank of Montreal, used under licence.

BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management, and trust and custody services. BMO Global Asset Management comprises BMO Asset Management Inc. and BMO Investments Inc. Certain of the products and services offered under the brand name, BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions and may not be available to all investors. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group is a service mark of Bank of Montreal (BMO).

BMO ETFs are managed and administered by BMO Asset Management Inc., an investment fund manager and portfolio manager and separate legal entity from Bank of Montreal. Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the prospectus before investing.

Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.

BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.

Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual fund investments. Please read the ETF facts, fund facts or prospectus of the relevant mutual fund before investing. Mutual 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 Mutual Funds, please see the specific risks set out in the prospectus. ETF Series of the BMO Mutual Funds 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 Life Assurance Company is the issuer of the BMO Segregated Funds individual variable insurance contract referred to in the Information Folder and the guarantor of any guarantee provisions therein. The BMO GIF Information Folder and Policy Provisions provide full details and govern in all cases. BMO GIF products are offered through BMO Life Assurance, a separate legal entity than BMO Global Asset Management and wholly owned by BMO Financial Group. Segregated funds are only available for sale by individuals with appropriate insurance licences and are not considered a mutual fund. Segregated fund fees are higher than mutual funds as they include insurance fees to provide for the guarantees on deposits at maturity or on death.

Legal and regulatory disclosures

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