Question 1

What are the benefits of investing in ETFs?

Accepted Answer

Efficient access to core investments and focused market segments. Access to institutional strategies by retail clients. Provide intraday liquidity through buying and selling during the trading hours of the stock exchange. Flexibility to buy on margin or sell short. Diversification offers potentially lower risk than individual securities. Ability to have exposure to a portfolio of stocks or bonds. Portfolio transparency on a daily basis. Cost-efficient due to relatively low management fees.

Question 2

How do I buy ETFs?

Accepted Answer

Shares of BMO ETFs can be bought and sold during normal trading hours through registered brokers and dealers in the province or territory where you reside. ETFs are not purchased directly from the ETF provider. To trade BMO ETFs, you can use any online, discount or full-service brokerage account. Your broker will charge their usual commissions or fees.

Question 3

What are ETFs?

Accepted Answer

ETFs are open-ended funds that are listed and traded on a stock exchange and can be bought or sold directly during trading hours, much like a stock. They typically represent a basket of securities which may consist of stocks, bonds, or other assets such as commodities. ETFs offer many benefits to investors, including diversification, liquidity, low fees, flexibility, transparency, and tax efficiency.

Question 4

Are all BMO ETFs eligible for registered plans?

Accepted Answer

Yes, all BMO ETFs are currently RRSP, RRIF, RDSP, and TFSA eligible. In general, BMO ETFs that qualifies as a mutual fund trust and that are listed on an established market index are eligible for registered plans, you should consult with your own broker or tax advisor regarding your personal circumstances.

Question 5

Can non-residents, including U.S. residents, invest in BMO ETFs?

Accepted Answer

BMO ETFs are offered through a prospectus filed in accordance with Canadian securities laws and regulations. Neither the securities of the ETFs nor the ETFs are registered with the United States Securities and Exchange Commission, or in any other jurisdiction. Generally, persons that are non-residents may invest through a broker by placing purchase orders on the Toronto Stock Exchange.

Question 6

What determines the Bid and Ask of an ETF?

Accepted Answer

The bid and ask for an ETF are similar to a stock, where the bid reflects what investors are willing to pay to buy units, and the ask reflects what investors are willing to sell units for. Unlike a stock, ETFs are open ended, meaning that supply and demand is not limited, so that a large order can result in the creation or redemption of ETF units. The bid and ask will reflect the average bid and ask of the underlying portfolio, and in addition, natural liquidity between buyers and sellers of the ETF may narrow the bid-ask spread.

#	Ticker	Fund name	AUM [$M]	Flows [$M]
1	ZGLD	BMO Gold Bullion ETF (CAD Units)	5581.61	539.6
2	ZAG	BMO Aggregate Bond Index ETF	10059.24	473.0
3	ZSP	BMO S&P 500 Index ETF	16023.83	304.0
4	ZST	BMO Ultra Short-Term Bond ETF	2663.61	288.8
5	ZCS	BMO Short Corporate Bond Index ETF	2845.04	101.1
6	ZMMK	BMO Money Market ETF	2457.98	97.3
7	ZUQ	BMO MSCI USA High Quality Index ETF	925.92	66.1
8	ZLU	BMO Low Volatility U.S. Equity ETF	1682.00	42.3
9	ZUE	BMO S&P 500 Hedged to CAD Index ETF	2697.51	30.9
10	ZBK	BMO Equal Weight US Banks Index ETF	840.55	28.1

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