BMO launches ETFs for direct gold investment, stored securely in Canada
BMO Asset Management Inc. (BMOAM Inc.), the entity behind BMO ETFs, today marked a significant addition to its product lineup with the introduction of new BMO ETFs specifically designed for investors interested in gold.
These include the BMO Gold Bullion ETF (CAD Units), BMO Gold Bullion ETF (USD Units), and BMO Gold Bullion Hedged to CAD ETF (CAD Units), all of which have completed their initial offering and are now actively traded on the Toronto Stock Exchange.
Created in direct response to investor demand, these New BMO ETFs cater to those looking to invest in gold by holding physical gold bullion securely within Canada.
The BMO Gold Bullion Hedged to CAD ETF is introduced as a hedged version of the BMO Gold Bullion ETF, offering investors an efficient way to gain exposure to gold without the hassle of direct ownership and storage.
“In times of economic uncertainty, geo-political concerns and stubbornly elevated inflation, gold is an attractive asset class for many investors looking to diversify their investment portfolio,” explained Alfred Lee, portfolio manager at BMO ETFs.
He emphasized, “The New BMO ETFs will provide investors an accessible, cost-effective way to gain exposure to physical gold, without the difficulties associated with buying and storing precious metals, helping investors make progress towards their investment objectives.”
The BMO Gold Bullion ETF aims to replicate, as closely as possible, the performance of gold bullion prices, net of fees and expenses. It focuses on long-term holdings of unencumbered gold bullion in 400 troy ounce international bar sizes.
This ETF avoids short-term speculation and is not actively managed, offering units in both Canadian and US dollars.
Conversely, the BMO Gold Bullion Hedged to CAD ETF seeks to mirror the price of gold bullion, net of fees and expenses, primarily investing in the BMO Gold Bullion ETF while using derivatives to hedge its foreign currency exposure back to the Canadian dollar.
Beyond these new offerings, BMO also provides ETFs that invest in gold mining companies, adding further depth to the investment choices in precious metals.
These include the BMO Equal Weight Global Gold Index ETF, which targets an equal weight diversified global gold mining companies index, and the BMO Junior Gold Index ETF, focusing on a junior gold companies index.
