BMO Launches ETFs Investing in Physical Gold Stored in Canada

The New BMO ETFs will provide investors with exposure to the price of gold bullion without the hassle of buying and storing the precious metal

TORONTO, March 8, 2024 /CNW/ – BMO Asset Management Inc. (“BMOAM Inc.”), the manager of the BMO ETFs, today announced the launch of the following new BMO ETFs (collectively, the “New BMO ETFs”):

  • BMO Gold Bullion ETF (CAD Units) (TSX: ZGLD)
  • BMO Gold Bullion ETF (USD Units) (TSX: ZGLD.U)
  • BMO Gold Bullion Hedged to CAD ETF (CAD Units) (TSX: ZGLH)

Each of the New BMO ETFs has closed its initial offering of exchange traded units and today is listed and trading on the Toronto Stock Exchange (the “TSX”).

The New BMO ETFs offer investors another way to invest in precious metals and were created in response to investor demand for exchange traded funds that not only invest in gold, but also hold physical gold in a highly secured location within Canada. BMO Gold Bullion Hedged to CAD ETF will offer investors a hedged version of BMO Gold Bullion ETF.

“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,” said Alfred Lee, Portfolio Manager, BMO ETFs. “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.”

Golden Opportunity for Investors

BMO Gold Bullion ETF

BMO Gold Bullion ETF seeks to replicate the performance of the price of gold bullion, net of fees and expenses, by investing in long-term holdings of unencumbered gold bullion in 400 troy ounce international bar sizes. BMO Gold Bullion ETF does not speculate with respect to short-term changes and is not actively managed. Investors can choose to purchase units that are priced in Canadian dollars or U.S. dollars.

BMO Gold Bullion Hedged to CAD ETF

BMO Gold Bullion Hedged to CAD ETF seeks to provide exposure to the price of gold bullion, net of fees and expenses. Currently, BMO Gold Bullion Hedged to CAD ETF primarily invests in BMO Gold Bullion ETF and uses derivative instruments to hedge foreign currency exposure back to the Canadian dollar.

Investing In Gold with the New BMO ETFs

The New BMO ETFs further bolster the choices for investors looking to gain exposure to the precious metals market. In addition to the New BMO ETFs, the following are existing index tracking BMO ETFs that provide investment exposure to gold mining companies:

BMO Equal Weight Global Gold Index ETF (TSX: ZGD) seeks to replicate, to the extent possible, the performance of an equal-weight diversified global gold mining companies index, net of expenses. Currently, the underlying index is the Solactive Equal Weight Global Gold Index.

BMO Junior Gold Index ETF (TSX: ZJG) seeks to replicate, to the extent possible, the performance of a junior gold companies index, net of expenses. Currently, the underlying index is the Dow Jones North America Select Junior Gold Index.  

Further information can be found at BMO ETF Centre.

Solactive AG (“Solactive”) is the licensor of the Solactive Equal Weight Global Gold Index (the “Solactive Index”). The ETF that is based on the Solactive Index is not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the ETF; (b) the quality, accuracy and/or completeness of the Solactive Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Solactive Index. Solactive reserves the right to change the methods of calculation or publication with respect to the Solactive Index. Solactive shall not be liable for any damages suffered or incurred as a result of the use (or inability to use) of the Solactive Index.

The Dow Jones North America Select Junior Gold Index (the “Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by BMOAM Inc. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”), and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by BMOAM Inc. The ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange traded funds are not guaranteed, their values change frequently, and past performance may not be repeated.

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.

BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.

®/™Registered trademarks/trademark of Bank of Montreal, used under licence.

About BMO Exchange Traded Funds (ETFs)

 BMO Exchange Traded Funds has been an ETF provider in Canada for more than 12 years, with over 100 strategies, over 23 per cent market share in Canada1, and $97.5 billion in assets under management. BMO ETFs are designed to stay ahead of market trends and provide compelling solutions to help advisors and investors. This includes a comprehensive suite of ETFs developed in Canada for Canadians, such as cost-effective core equity ETFs following market leading indexes, and a broad range of fixed income ETFs; solution-based ETFs responding to client demand; and innovation with smart beta ETFs, as well as combining active and passive investing with ETF series of active mutual funds.

1Morningstar, December 2023

About BMO Financial Group

BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.3 trillion as of January 31, 2024. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.

SOURCE BMO Financial Group

For further information: Media Contact: Aaron Sobeski, Toronto, Aaron.Sobeski@bmo.com, (416) 867-3996

Published on March 8, 2024

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