What is an asset allocation ETF?

An asset allocation ETF makes it easier for common investors to achieve their financial goals by investing through a single fund that matches their risk and return profile. This structure provides investors broad-based options to invest in stocks and bonds in various geographic locations without the need for constant rebalancing and monitoring. By consolidating different assets into one fund, this approach makes asset allocation simple and cost-efficient for investors who want to develop a global, diversified portfolio.

What is an all-in-one ETF?

An all-in-one ETF is a single fund which offers investors an avenue to build a diversified global portfolio through a mix of bonds and stocks without the need for buying individual ETFs. All-in-one ETFs, also known as asset allocation ETFs, make investing simple and more efficient for common investors to achieve their financial goals. In addition to their simple structure, all-in-one ETFs are designed for automatic rebalancing to keep portfolios on track to achieve their performance target.

What is strategic asset allocation vs tactical asset allocation?

In strategic asset allocation, investment managers establish a mix of equities, fixed income and cash that is best suited to investors’ risk tolerance and financial objectives. They maintain this mix regardless of short-term market conditions. This strategy focuses on a well-diversified portfolio using a variety of assets in global markets. If investors’ objectives change over time, managers can rebalance the asset mix. In tactical asset allocation, managers build a diversified portfolio of equity and fixed income with the flexibility to change the asset mix in the short run to take advantage of market conditions and manage risks. This approach focuses on an active asset management strategy to make timely adjustments in the asset mix to achieve financial goals.

What type of assets make up an asset allocation fund?

An asset allocation fund generally invests in equities, bonds, cash or cash equivalents to offer investors a diversified portfolio through a single investment product. By investing in a well-diversified assets and global jurisdictions, the fund tries to achieve pre-determined investment objectives that align with investors’ risk/reward profile.

Automatic Rebalancing Service | BMO Global Asset Management

For advisor use only

Many people know that diversification is a key component of risk management. When a particular asset class outperforms, that can be cause for celebration—but it may also throw off a portfolio’s intended asset allocation.

BMO GAM’s Automatic Rebalancing Service makes rebalancing a snap, helping Advisors to crystallize gains while adjusting the portfolios’ weightings to meet their original goals. For income-oriented clients, portfolio rebalancing may also limit sequence of return risk.

The Automatic Rebalancing Service can be accessed through iFast Web PLUS. See our for simple, step-by-step instructions. Alternately, the service can be accessed by filling out the PDF form below.

For more information contact your BMO Global Asset Management wholesaler.

Resources and documents

Automatic rebalancing service FAQs

Where can I find the service?

What plan types is this service available in?

What account types is the Rebalancing Service available?

What signatures are required?

Via Web PLUS:

BMO does not require any signatures to action the request. Advisors may still require client signatures/authorization to be kept on file to satisfy dealer compliance criteria (i.e., Letter of Direction, Limited Trading Authorization, etc.).

Via Form:

The client and their Advisor must sign for Client Name Accounts. Nominee accounts must be authorized by the dealer’s head office to be accepted.

What funds are eligible to be held within this service?

What frequency can the rebalancing occur on?

Are BMO Segregated Funds eligible for rebalancing service?

Can other fund company’s mutual funds be included in the Rebalancing Service?

Is the service available for CAD and USD Funds?

Can I hold funds in the same account which are not part of the rebalancing service?

If I choose to fill out the PDF form, how do I submit it?

Can I submit the PDF form online?

How are the Rebalancing Trades processed?

Is there a cost for the Rebalancing Service?

What happens if one or more of the funds is redeemed from the portfolio?

Are redemptions and purchases processed based on the portfolio mix?

Can I rebalance a portfolio outside of the agreed upon frequency?

Are portfolios rebalanced after a purchase or redemption to one or more of the funds is processed?

Can I specify only a specific portion (or units or dollars) to be included in the rebalancing?

Can I rebalance funds across different accounts?

Will the rebalancing service trigger dispositions?

How can I change or stop the rebalancing service?

Disclaimers:

Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual fund investments. Please read the fund 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 BMO Mutual Funds, please see the specific risks set out in the prospectus.

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

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.