Making "cents" of clean energy

Introducing the BMO Clean Energy ETF Fund

Our world runs on energy. Largely fueling our daily habits are resources like coal, crude oil and other fossil fuels. These resources, however, have a limited supply, and have large costs associated with them both in terms of expenses and on the health of our environment.

Renewables play an important role in our future. Whether that be solar, wind, geothermal or hydro these carbon neutral options have unlimited supply and will help create a cleaner, healthier society. Countries around the globe are investing heavily in green energy development including areas like clean transportation, energy efficiency, deployment, and research and development (R&D) which is having a great impact on job growth and emissions reductions. Climate change remains a hot topic in the political landscape with a Biden presidency in the U.S. signaling a tougher stance will be adopted.

Clean energy provides growth potential far and above traditional energy with renewables having the opportunity to power the green revolution.

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In April 2019, for the first time ever, renewable energy outpaced coal by providing 23 percent of U.S. power generation, compared to coal’s 20 percent share.

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trillion

To enable the power system of the future, $14 trillion in grid investment is needed between now and 2050.

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Wind and Photo-Voltaic (Solar) grow to meet 56% of world electricity demand in 2050.

Introducing the BMO Clean Energy ETF Fund

The BMO Clean Energy ETF Fund tracks the S&P Global Clean Energy Index providing liquid and tradable exposure to a target of 100 companies from around the world that are involved in clean energy related businesses.

Eligible businesses are selected based on company’s business description and its most recent reported revenue by segment. The index must have weighted average exposure score of 0.85% as defined by S&P Global Clean Energy Index methodology.

Exposure score Definition

0

Eliminated, no exposure.

0.5

Moderate clean energy exposure.

0.75

Significant clean energy exposure.

1

Maximum clean energy exposure.

Disclosures

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.

Commissions, trailing commissions (if applicable) , management fees and expenses all may be associated with mutual fund investments. Please read the fund facts or prospectus of the relevant mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Distributions are not guaranteed and are subject to change and/or elimination. For a summary of the risks of an investment in BMO Mutual Funds, please see the specific risks set out in the prospectus.

The performance of the Index Fund is expected to be lower than the performance of the Index.

BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp., BMO Asset Management Limited and BMO’s specialized investment management firms.

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