ESGB - BMO ESG Corporate Bond Index ETF

Portfolio Strategy

BMO ESG Corporate Bond Index ETF (ESGB) has been designed to replicate, to the extent possible, the performance of the Bloomberg Barclays MSCI Canadian Corporate Sustainability SRI Index, net of expenses. Securities held in the Index are a variety of investment grade corporate bonds issued domestically in Canada in Canadian dollars, which have a term to maturity greater than one year, and have a higher MSCI ESG rating than their peers.

Benchmark Info

Bloomberg Barclays MSCI Canadian Corporate Sustainability SRI Index screens issuers from the parent index, Bloomberg Barclays Canadian Corporate Index, based on MSCI ESG ratings. The Index aims to capture the performance of fixed income securities with ESG ratings of BBB or above. The index excludes securities of companies that earn a significant portion of revenues from tobacco, adult entertainment, alcohol, gambling, conventional weapons and civilian firearms, any controversial weapons, significant generation of nuclear power as well as companies involved in severe business controversies. Eligible securities must have greater than one year to maturity and greater than $150 million outstanding and issued by industrial, utility and financial issuers. The index is rebalanced monthly.

Benefits

  • Designed for investors looking for consistent income
  • Designed for investors looking to align socially responsible values with their investments using a best-in-class approach
  • Invested in a diversified portfolio of corporate bonds
  • Includes bonds with a term to maturity greater than one year
  • Professionally managed by BMO Global Asset Management

Full details: ESGB - BMO ESG Corporate Bond Index ETF

Latest insights

Multi-Asset
Field of boxes
July 2022

July Monthly Market Commentary: Recession on the Radar

Expectations for Fed and Bank of Canada (BoC) tightening continue to firm up as monetary stimulus is getting removed at a quick pace to lean against excessive inflationary pressures. Rising rates should weigh on the growth outlook and equity valuation, but we do not expect a recession over the next 6 to 9 months.
Multi-Asset
economic uncertainty
June 2022

June Monthly Market Commentary: The Economy to Face Increasing Chill, not a Hurricane

Expectations for Fed and Bank of Canada (BoC) tightening continue to firm up as monetary stimulus is getting removed at a quick pace to lean against excessive inflationary pressures. Rising rates should weigh on the growth outlook and equity valuation, but we do not expect a recession over the next 6 to 9 months.
Multi-Asset
economic uncertainty
May 2022

May Monthly MAST Commentary: Rising commodity prices continue to support the inflation outlook while supply-chains are still exposed to disruptions

Monetary stimulus from the U.S. Federal Reserve (the “Fed”) and Bank of Canada (BoC) is getting removed at a quick pace to lean against excessive inflationary pressures. Rising rates should weigh on the growth outlook and equity valuation, but we do not expect a recession over the next 12 months.
Multi-Asset
economic uncertainty
April 2022

April Monthly MAST Commentary: Fear of War is Coming Down, but Fear Over the Fed’s Soft-landing is Rising

The conflict in Ukraine keeps on raging, but fear of an escalation has come down. However, the impact on commodity prices will continue as prices remain elevated and long-term supply remains an issue, most notably for Europe and other commodity importing countries.
April 2022

Value Hunting: The Return of Cautious Optimism

With macroeconomic data telling two different stories—one of low unemployment and robust earnings, another of high inflation and rising interest rates—Luke Casey of Pyrford International provides an inside look at the investing factor that’s making a surprise comeback: Value.
April 2022

A Portfolio Manager’s Guide to War and Conflict

With Russia’s recent invasion of Ukraine, institutional investors are once again questioning the historical relationship between war and capital markets.