“The year 2022 may well be characterized by a great market volatility and several central bank rate hikes around the world. We are excited to launch this new ETF to help investors navigate market cycles and build a sustainable future. “A proactive approach to fixed income investing provides latitude to actively adjust a portfolio of ETFs and minimize concentration risk,” says National Bank Investor. President and CEO Eric-Olivier Savoie said.
NSSB comes with a management fee of 0.25%.
Meanwhile, the BMO Canadian Bank Earnings Index ETF, listed on the TSX as ZBI, invests in non-traditional securities such as preferred shares and LRCNs, anchored in the fixed income of a traditional Canadian bank.
“In the midst of an environment of rising inflation and interest rates, investors are looking for innovative solutions that behave differently than traditional fixed income products,” said Mark Ras, Head of Product (Canada), BMO Global Asset Management. “BMO’s new ZBI ETF gives investors access to the yield-enhancing segment of the bank funding market – which includes preferred shares with holdings of LRCNs and bank bonds – resulting in shorter duration and higher yields than the overall fixed income market. it occurs.”
The launch of ZBI today follows BMO Asset Management Inc.’s recent addition of 10 new ETFs to its portfolio, including a climate-focused ETF in its ESG suite, more innovative income-focused ETFs and a broader asset-allocation . The ETF continued.
