ZEF - BMO Emerging Markets Bond Hedged to CAD Index ETF
Portfolio Strategy
The BMO Emerging Markets Bond Hedged to CAD Index ETF (ZEF) has been designed to replicate, to the extent possible, the performance of the Barclays Emerging Markets Tradable External Debt (EMTED) GDP Weighted Capped Index CAD Hedged, net of expenses. The Fund invests in a diversified basket of US dollar denominated sovereign debt from emerging markets issuers by including up to three bonds per emerging market country. The US dollar exposure is hedged back to Canadian dollars.
Benchmark Info
The Barclays Emerging Markets Tradable External Debt (EMTED) GDP Weighted Capped Index CAD Hedged is a diversified basket of US dollar denominated sovereign debt from emerging market issuers. The basket is designed to be broad-based in its coverage of emerging market sovereign issuers, yet tradable by including up to three bonds per emerging market country and diversified by capping and flooring both the region and country exposures in the index according to the index rules. The index is comprised of securities with a term to maturity of between 18 months and no more than 10 years. The Index is weighted by gross domestic product as a measure of economy size. The US dollar exposure is hedged back to Canadian dollars.
Benefits
- Designed for investors looking for higher income
- Invested in a diversified portfolio of U.S. dollar emerging market bonds
- Includes bonds with 18 months to ten years to maturity
- Currency is hedged back to Canadian dollars
- Professionally managed by BMO Global Asset Management
