BMO Asset Management (BMO AM) is marketing a new class of US dollar units of its BMO US High Dividend Covered Call ETF in a move to target Canadian retail investors who want to use the US currency to invest. With the addition of the US dollar-denominated version of the BMO US High Dividend Covered Call ETF, BMO AM’s lineup of ETFs offering USD units now includes five products – BMO US High Dividend Covered Call ETF; BMO S&P 500 Index ETF; BMO US Dividend ETF; BMO Low Volatility US Equity ETF; and BMO Mid-Term US IG Corporate Bond Index ETF.
The US market is becoming increasingly popular for Canadian investors, with many seeking different ways to participate in it whether through the purchase of Canadian dollar hedged units, Canadian dollar unhedged units or US Dollar units, said Kevin Gopaul, chief investment officer and senior vice-president at BMO AM in a statement.
The US dollar units of BMO US High Dividend Covered Call ETF began trading on the Toronto Stock Exchange on February 12. The launch follows a report by BMO Global Asset Management (BMO GAM) which unveiled that the use of ETFs by Canadian investors who have normally traded single stocks will continue to drive growth in the Canadian ETF industry.
The Canadian ETF industry experienced significant growth in 2014, with more than C$10.3bn in inflows – double the flows seen in 2013.
BMO has over 1,100 live structured products of which 890 structures were sold in Canada and 308 in the US market. The Canadian bank has ten products open for subscription in its domestic market and 11 in the US market.
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