• BMO is following in Vanguard Canada's footsteps and listing model portfolio ETFs.
  • The company is also listing four other products to add muscle to its product range.
BMO, Canada's second largest ETF provider by assets, is listing seven new ETFs on the Toronto Stock Exchange.
Ticker Fund Name Management fee
ZBAL BMO Balanced ETF 0.18%
ZCON BMO Conservative ETF 0.18%
ZGRO BMO Growth ETF 0.18%
The first three - ZBAL, ZCON, ZGRO - are model portfolio gambits. They invest in several underlying BMO index funds, the fees of which will be rebated. Like other model portfolio ETFs, the funds will provide asset allocations that corresponds to risk tolerance. Thus, the growth ETFs will be mostly in equities, while the conservative ETFs is mostly in bonds.

The funds will compete against model portfolio ETFs by Vanguard, whose products BMO appears to be mimicking, right down to the fund names and tickers.

Ticker Fund Name Management fee AUM (M$CAD)
VGRO Vanguard Growth ETF Portfolio 0.22% 585
VBAL Vanguard Balanced ETF Portfolio 0.22% 403
VCNS Vanguard Conservative ETF Portfolio 0.22% 152
The ultra-low cost, together with the presence of Vanguard, suggest that model portfolio ETFs in Canada are becoming commoditised.

The other four new listings are somewhat dispersed.

Ticker Fund Name Management fee
ZNQ BMO NASDAQ 100 Equity Index ETF 0.35%
ZWK BMO Covered Call US Banks ETF 0.65%
ZUS/U BMO Ultra Short-Term US Bond ETF
ZHU BMO Equal Weight US Health Care Index ETF 0.30%
The Nasdaq tracker will complement BMO's existing hedged product, which has more than $550M under management.

ZWK will invest in US banks (Canadian investors love banks, particularly their own) and sell call options on the bank holdings.

ZUS will invest in a portfolio of US bonds with shorter duration exposure, to ensure they're less interest rate sensitive.

While ZHU will invest in the extremely-well-performing US healthcare sector on an equal weight basis.