BMO options for gold
New gold ETFs from BMO
Why BMO ETFs for physical gold
Fully allocated
Inventory is only held in physical form. No paper certificates or derivatives 3 are utilized for investor exposure.
Locally housed in Canada
Gold is held in a local BMO vault in Toronto.
Cost efficient
Competitive management fees for physical gold trusts that trade over the Toronto Stock Exchange.
Ease of access
BMO Gold ETFs can be bought and sold on the Toronto Stock Exchange on any open trading day. Investors do not have to handle and store physical gold to gain exposure. The net asset value per unit of the ETF’s movement is tied to the price of physical gold bullion.
Currency exposure management
Investors can get exposure to physical gold via three different ETF options. ZGLD is unhedged to U.S dollar, ZGLH is hedged to the Canadian dollar and ZGLD.U is purchased in U.S dollars for those who have U.S. dollars and want to avoid conversion fees.
Gold has exhibited strong historical performance
Advantages of investing with Gold
Diversification
Exposure to physical gold can be a good portfolio building block as historically precious metals tend to have a lower correlation4 to traditional asset classes like stocks and bonds5. Its low correlation offers investors an effective way to diversify their portfolios and potentially add alpha6 during down market periods.
Inflation hedge & haven
Gold has historically provided positive rates of return in rising/high inflation market conditions. Gold has long been classified as a safe haven asset as during periods of crisis and economic uncertainty precious metals tend to outperform. 5
Return potential
Physical gold demand has been on the rise and higher than its 10-year average, thus mining activities have not been able to keep up with demand.7 Investor appetite for physical real assets and central bank purchases can lead to further price increases in the future.
For more information, please read our whitepaper on gold
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Footnotes
1 Changes in rates of exchange may also reduce the value of your investment.↩
2 Risk is defined as the uncertainty of return and the potential for capital loss in your investments.↩
3 A financial security with a value that is reliant upon, or derived from, an underlying asset or group of assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its price is determined by fluctuations in the underlying asset.↩
4 A statistical measure of how two securities move in relation to one another. Positive correlation indicates similar movements, up or down together, while negative correlation indicates opposite movements (when one rises, the other falls).↩
5 Source: BMO Global Asset Management, Bloomberg, January, 31 2024.↩
6 A measure of performance often considered the active return on an investment. It gauges the performance of an investment against a market index or benchmark which is considered to represent the market’s movement as a whole. The excess return of an investment relative to the return of a benchmark index is the investment’s alpha.↩
7 Source: World Gold Council, https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q3-2023.↩
8 Source: BMO Global Asset Management, Bloomberg as of February 6, 2024. Average annual percentages are calculated in local currencies. Past performance is no guaranteed of future results.↩
10 Spot gold price is the price at which gold can be bought or sold for immediate delivery.↩
Disclaimer
This material is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent prospectus.
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.
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BMO Exchange Traded Funds Investing in Gold with BMO ETFs