Broad Markets ETFs

A portfolio is only as strong as it’s core
Broad Market Investing Using ETFs

Core ETFs provide investors exposure to asset classes that are broadly representative of the market and form the building blocks of your portfolio. Depending on your needs, core ETFs come in many shapes and sizes and provide instant diversification, liquidity and cost efficiency.

Why Use Broad Market ETFs
  • Diversified Exposure: Investing in a broad basket of stocks tracking the whole market provides diversification which helps mitigate the singe stock risk and lower overall volatility.
  • High liquidity: While the ETF is a basket of stocks, they trade just like an individual stocks, so that you can quickly move in or move out of the position to factor in your market views.
  • Save time and effort: Save time and effort of single stock research and focus on the market as a whole.
  • Low Cost: With one trade, you can get access to hundreds of different companies
  • Rebalancing: Broad market ETFs stay pure to the desired investment theme and rebalance for the investor
How to use Broad Market ETFs in your Portfolio
  • Core-Satellite Strategy: This strategy aims to replicate the broad market return in the core portion of a portfolio, and uses a satellite strategy to find alpha opportunities and add diversification using non-core market exposures.
  • Strategic Asset Allocation: When you have a target set of asset classes you expect to have in place for a long period of time. The target allocation is expected to remain the same and the portfolio is rebalanced to the original allocations when they deviate from the initial settings

This communication is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.

The portfolio holdings are subject to change without notice and only represent a small percentage of portfolio holdings. They are not recommendations to buy or sell any particular security.

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.

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