What are broad market indexes?

Broad market indexes represent all the stocks within an entire market, therefore broad market indexes are more diversified investments. BMO ETFs track some of the most recognized broad market indexes in the world.

Index ETFs | BMO Global Asset Management

Q: What is a market index?

A market index tracks the performance of a group of stocks or bonds that can represent a segment of the market or can represent the market as a whole.

Q: What is index investing?

Index investing is when an investor decides to buy in all the securities within a particular index, rather than picking several individual stocks. This is also known as "passive investing”. ETFs make index investing accessible to investors.

Q: What is a market cap weighted index?

The index constituents are weighted according to the total market cap or market value of their available outstanding shares.

Q: Do index ETFs provide diversification?

Using an ETF to get direct exposure to an index makes index investing cost efficient and transparent. It provides more portfolio diversification and offers investors the ability to own an entire index in a single trade.

Capture broad market returns with index ETFs

Index tracking ETFs are the essential building blocks of a portfolio that provides the foundation for long-term growth, allowing investors to supplement with regional or other asset classes while maintaining a low-cost portfolio.

Replicating the world’s indices individually would require buying hundreds of securities and continuously rebalancing the portfolio to match index changes. With BMO Index ETFs, you achieve comprehensive market exposure and automatic rebalancing at a fraction of the cost.

Benefits of index ETFs

Explore our index ETFs

BMO ETFs provide an efficient suite of core solutions that represent the right indices and are effectively priced.

Canada and U.S.

Take advantage of our core Canadian and U.S. equity ETFs that offer easy and broad exposure to North America’s leading indices.

View Canada and U.S. ETFs

Global

Get instant access to the right global indices to capture the entire marketplace and factors influencing the market.

View Global ETFs

Fixed income

Strengthen your portfolio with our core fixed income ETFs that can offer consistent income, stability, and diversification.

View Fixed income ETFs

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You can purchase BMO ETFs through your direct investing account with your online broker, or through your investment advisor.

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Index ETFs FAQs

What is a market index?

What is index investing?

What are broad market indices?

What is a market cap weighted index?

Do index ETFs provide diversification?

What is tracking error?

How does an ETF follow an Index over time?

In general, ETFs usually follow an index by investing in a collection of securities that mimics the index’s makeup. The fund manager tries to match the index’s performance by purchasing and holding the same assets in the same proportions. This ensures that the ETF’s value mirrors the movements of the tracked index. Investors can trade ETF shares on the stock exchange, offering a convenient means to participate in the overall performance of the underlying index.

Disclaimers

The Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by the Manager. S&P^®, S&P 500^®, US 500, The 500, iBoxx^®, iTraxx^® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”) and Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”), and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Manager. The ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.

Nasdaq^® is a registered trademark of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and is licensed for use by the Manager. The ETF has not been passed on by the Corporations as to their legality or suitability. The ETF is not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the ETF.

The ETF referred to herein is not sponsored, endorsed, or promoted by MSCI and MSCI bears no liability with respect to the ETF or any index on which such ETF is based. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI has with the Manager and any related ETF. 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.

“BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.

Index ETFs

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