New suite of BMO ETFs focused on ESG

BMO Asset Management Inc. has introduced seven new indexed environmental, social and governance (ESG) ETFs.

The BMO Balanced ESG ETF offers an asset allocation of 60% equity and 40% fixed income. In a release, BMO said the new fund is the first balanced ETF devoted to ESG in Canada.  

Four additional equity ETFs follow MSCI ESG Leaders indexes, targeting the top 50% ESG-rated equities within certain sectors, excluding companies involved in controversies and industries such as alcohol, gambling, tobacco and weapons.

Two additional fixed-income ETFs invest in investment-grade corporate bonds with high MSCI ESG ratings.

BMO also announced the launch of two other ETFs: the BMO Global High Dividend Covered Call ETF, which features “some” ESG integration, and the BMO Premium Yield ETF.

All of the new ETFs began trading on the Toronto Stock Exchange on Tuesday.

Maddie Johnson

Maddie is a freelance writer and editor who has been reporting for Advisor.ca since 2019.