ETF-Based Mutual Funds | BMO Global Asset Management

Q: What is an ETF-based mutual fund?

An ETF-based mutual fund is a fund that invests in, or replicates, an existing exchange traded fund. There is no active management at the fund level. The underlying ETF may be active or passive.

Q: Can you use ETF-based mutual funds in registered accounts?

Yes, you can use many ETF-based mutual funds in your registered accounts, just like any other mutual fund. Please review the fund facts and prospectus for more information.

The benefits of ETF-based mutual funds

You can now access a selection of our popular ETFs as mutual funds.

Because having choices is important.

Lower costs

ETF-based mutual funds tend to charge lower fees than many other investments

Daily Net Asset Value (NAV)

Mutual funds have end-of-day pricing and no bid/ask spread

Accessibility

You may purchase a mutual fund investment from as little as $500, with subsequent purchase increments of $50

Simple transactability

A mutual fund structure allows you to set up of automatic pre-authorised contributions or systematic withdrawal plans

Our line up of ETF-based mutual funds is growing

BMO Covered Call Energy ETF Fund

Exposure to equities of energy and energy-related companies, with a covered call option overlay

BMO Covered Call Utilities ETF Fund

Exposure to equities of utility companies, with a covered call option overlay

BMO Ultra Short-Term Bond ETF Fund

A diversified mix of fixed income securities with a term to maturity of less than one year

ETF-based mutual funds to meet investors' evolving needs

Fixed income ETF-based mutual funds

Enhanced income ETF-based mutual funds

If you are looking for a higher-level of cash flow through exposure to equities and option-based strategies, you may consider one of these funds:

BMO Covered Call Canada High Dividend ETF Fund
BMO Covered Call Canadian Banks ETF Fund

BMO Covered Call Energy ETF Fund
BMO Covered Call Europe High Dividend ETF Fund
BMO Covered Call U.S. High Dividend ETF Fund
BMO Covered Call Utilities ETF Fund
BMO Global Enhanced Income Fund
BMO Premium Yield ETF Fund

Low volatility ETF-based mutual funds

Growth ETF-based mutual funds

If you are looking for exposure to equities, whether it be broad and/or sector-based, for long-term growth potential, you may consider one of these funds:

BMO ARK Innovation Fund

BMO Canadian Banks ETF Fund

BMO Canadian Equity ETF Fund

BMO Clean Energy ETF Fund

BMO Global Quality ETF Fund

BMO International Equity ETF Fund
BMO Nasdaq 100 Equity ETF Fund

BMO U.S. Dollar Equity Index Fund
BMO U.S. Equity ETF Fund

Documents

Investor brochure

Start investing

If you are a financial advisor, you can call us at 1-800-668-7327 or send us an email

If you are an investor, please download the brochure above and contact your financial advisor to start investing.

ETF-based mutual funds FAQs

What is an ETF-based mutual fund?

What is the difference between an ETF and an ETF-based mutual fund?

An ETF represents a basket of securities or indices. ETFs are traded on a stock exchange the same way that regular stocks are. Its value depends both on the market value of the securities or indices it represents, but also on the demand for the particular ETF.

An ETF-based mutual fund is a mutual fund that invests in an ETF. It is a one-to-one investment.

The advantage of the mutual fund structure is that the minimum investment remains at $500 initial and $50 subsequent contributions, while the price of the ETF can be much greater, prohibiting smaller incremental investments.

Mutual funds also do not attract trading costs like ETFs do.

Can you use ETF-based mutual funds in registered accounts?

Disclaimers

Commissions, management fees and expenses (if applicable) all may be associated with investments in mutual funds. Trailing commissions may be associated with investments in certain series of securities of mutual funds. Please read the fund facts, ETF 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 the BMO Mutual Funds, please see the specific risks set out in the prospectus. ETF Series of the BMO Mutual Funds 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 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 under which BMO Asset Management Inc. and BMO Investments Inc. operate. Certain of the products and services offered under the brand name, BMO Global Asset Management, are designed specifically for various categories of investors in Canada and may not be available to all investors. Products and services are only offered to investors in Canada in accordance with applicable laws and regulatory requirements.

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.

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