Factor ETFs

When you want more than just vanilla, we’ve got a variety of factor ETFs that can help enhance your portfolio returns and manage risk.
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Why invest in Factor ETFs

Factor ETFs, sometimes referred to as smart beta1 ETFs, specifically target drivers of return to optimize portfolio performance. These ETFs utilize rules-based strategies aimed at outperforming traditional benchmarks or achieving particular investment objectives such as low volatility, quality, dividends, equal weight, and value. Depending on your financial goals and market outlook, you can tilt your portfolio towards a factor to mitigate market risk, to target excess returns, or achieve both.

Explore our Factor ETF strategies

BMO ETFs deliver the right factor exposures to help build effective portfolios. Our line-up includes select factors that perform in different market cycles and provide the potential for better risk adjusted returns. Discover our factor strategies:

Low Volatility

BMO Low Volatility ETFs allow investors to target a specific portfolio risk level that is lower than the broad market. The strategy can be used as a core, long-term investment with the potential to minimize risk, while still providing growth opportunities.

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Quality

BMO Quality ETFs invest in companies that have a sustainable competitive advantage with high quality scores based on three variables: high return on equity, stable earnings growth, and low financial leverage.
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Dividends

BMO Dividend ETFs are designed to generate high level of sustainable dividend income, as well as the potential for portfolio gains. BMO’s dividend factor screens for historical growth, momentum, and sustainability of dividends to provide investors a diversified core solution.

View Dividends ETFs

Value

BMO Value ETFs utilize a strategy designed to choose undervalued companies and sidestep potential value traps by selecting stocks based on our core value metrics – low forward price-to-earnings, low price-to-book, and low enterprise value-to-cash flow from operations. When combined, these value descriptors provide a more accurate value assessment.

View Value ETFs

Resources and documents

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You can purchase BMO ETFs through your direct investing account with your online broker, or through your investment advisor.
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Factor ETF FAQs

What is factor-based investing?
What is a factor-based ETF?
How can I use factor-based ETFs in a portfolio?

Footnotes

1 Beta: A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.↩

Disclaimers

This communication is for information purposes. The information contained herein is not, and should not be construed as, investment advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.

 

The ETF referred to herein is not sponsored, endorsed, or promoted by MSCI and MSCI bears no liability with respect to the ETF or any index on which such ETF is based. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI has with the Manager and any related ETF.

 

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange traded 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 ETFs, please see the specific risks set out in the BMO ETF’s prospectus. 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 ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.

 

BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate.

 

“BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.