You can't stop progress. Now you can invest in it.
Thematic investing in megatrends involves investing around a particular premise or trend that is expected to play out over the next several years. These megatrends have the potential to change how we interact with the world.
Covering five key megatrends, BMO’s suite of innovation ETFs make investing in innovation accessible.
BMO Global Asset Management is the first provider in Canada to offer the MSCI Innovation Index in an ETF.
Key megatrends and the innovation ETF solutions to invest in each
The BMO MSCI Innovation Index ETF (ticker: ZINN) generally invests in a variety of innovative companies that have high exposure to the following themes: autonomous technology & industrial innovation, genomic innovation, fintech innovation and next generation internet innovation.
Core financial functions are being transformed by technologies. The development of digital wallets, blockchain technologies and neural networks are making it more efficient for financial companies to analyze data, process transaction and assess risk.
The BMO MSCI Fintech Innovation Index ETF (ticker: ZFIN) generally invests in companies with high exposure to business activities such as digital and mobile payments, blockchain technologies or peer to peer transactions, and digital platforms which includes targeted marketing and financial services platforms.
The “genomic age” began with the successful DNA sequencing of the human genome. This laid the groundwork for this megatrend, which is predicted to generate hundreds of billions in new revenue and trillions in new market capitalization over the next five years with drug development pipelines leading the way.
The BMO MSCI Genomic Innovation Index ETF (ticker: ZGEN) generally invests in companies which are determined to have a high exposure to business activities such as gene editing, agricultural biotechnology, molecular diagnostics, genome related hardware for analytics and diagnostics, bioinformatics, targeted therapeutics, and gene and stem cell therapies.
Next Gen Internet
Of the nearly five billion global internet users, more than three billion average seven hours of usage day, making online activity the second-most frequent human activity after sleeping. The economic value now lies not in computers, but in their ability to connect us, gather data, and retain our attention.
The BMO MSCI Next Gen Internet Innovation Index ETF (ticker: ZINT) generally invests in companies with high exposure to business activities such as cloud computing, internet of things (IoT), mobile and digital payments, e-commerce, social media, blockchain or P2P, machine learning and artificial intelligence technologies.
Autonomous Tech & Industrial
Industrials and manufacturing are being transformed by 3D printing and robotics. Drones and driverless cars are disrupting travel, transportation, and delivery. As the cost for these advancements begins to drop, their adaption by businesses, industries and people will exponentially grow.
The BMO MSCI Tech & Industrial Innovation Index ETF (ticker: ZAUT) generally invests in companies with high exposure to business activities such as the development of new products and services as a result of technological innovation in industrial automation, manufacturing, transportation, energy usage, energy storage, energy production as well as in artificial intelligence and machine learning.
Renewable energy plays 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 R&D which is having a great impact on job growth and emissions reductions.
The BMO Clean Energy Index ETF (ticker: ZCLN) generally invests in a variety of global clean energy companies. These securities are involved in clean energy related businesses. The S&P Global Clean Energy Index comprises a diversified mix of clean energy production and clean energy equipment & technology companies.
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