BMO Structured Outcome ETFs

Stay dialed into the market

In the quest to build better investment portfolios, one name has constantly stood as your partner on the frontier of innovation: BMO Global Asset Management.

In 2009, we established BMO ETFs to answer the call for more asset classes and investment strategies. Our focus on broader access has helped so many Canadians tailor portfolios to their needs—and you’ve rewarded us with greater trust and assets under management.

Now we’re unlocking cutting-edge strategies that deliver a whole new range of outcomes—many of which were only available to a select group of investors. Introducing: BMO Structured Outcomes ETFs.

BMO Buffer ETFs

Worried about an economic decline? Want to reduce the risk of market timing? BMO Buffer ETFs can complement or substitute your core equity positions, providing a built-in cushion on the downside while keeping you invested in broad U.S. equities.¹

BMO US Equity Buffer Hedged to CAD ETF – January

(Ticker: ZJAN)

BMO US Equity Buffer Hedged to CAD ETF – October

(Ticker: ZOCT)

BMO US Equity Buffer Hedged to CAD ETF – April

(Ticker: ZAPR)

BMO US Equity Buffer Hedged to CAD ETF – July

(Ticker: ZJUL)

These strategies help you participate in the upside to a pre-determined level—and if the underlying reference asset falls, you have a buffer zone to mitigate losses. In a nutshell: you trade in some upside for added downside protection.

Potential Outcomes Scenarios: Day 1 to Day 365

How Buffer ETFs Work

Buffer ETFs use option contracts engineered to provide a layer of protection with a cap on the market participation over the defined period. Within the period, values will depend on the market, intrinsic and time value of the options.² The buffered zone and cap on market participation is set at the beginning of the period and only applies at the end of the specified outcome period. Investors trading the ETFs during the period can experience different performance from the stated downside buffers and upside cap.

Why buy?

No Options Expertise Required: Traditional ETF that trades on the exchange
No Upfront Commissions: As opposed to other structures, ETFs are ideal for fee-based and discretionary accounts
No Use of Leverage: Outcomes generated through a mix of equities

BMO Accelerator ETFs

Need more near-term growth? BMO Accelerator ETFs offers a way to ramp up your equity exposure and deliver more from a slow growth environment, providing approximately 2x the price returns (plus dividends) of an underlying reference asset.³

BMO US Equity Accelerator Hedged to CAD ETF

(Ticker: ZUEA)

BMO Canadian Banks Accelerator ETF

(Ticker: ZEBA)

You can effectively double your upside to a pre-Structured level—capitalizing on a mix of equities and options. The kicker: Accelerator ETFs do not amplify your downside risk.

How Accelerator ETFs Work

Accelerator ETFs use options contracts engineered to provide approximately 2x price returns with a cap on the market participation over the defined period. The accelerator zone and upside cap on market participation are set at the beginning of the period and only apply at the end of the specified outcome period. Investors trading the ETFs during the period can experience different performance from the stated outcomes.

Why buy?

No Options Expertise Required: Traditional ETF that trades on the exchange
No Upfront Commissions: As opposed to other structures, ETFs are ideal for fee-based and discretionary accounts
No Use of Leverage: Outcomes generated through mix of equities and option contracts

Additional Resources

Buffer ETFs

Accelerator ETFs

Visit bmo.com/etfs or contact Client Services at 1−800−361−1392.
To listen to our Views From the Desk BMO ETF Podcasts, please visit bmoetfs.ca.

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¹Bloomberg, as of October 10, 2023.

Volatility: Measures how much the price of a security, derivative, or index fluctuates. The most commonly used measure of volatility when it comes to investment funds is standard deviation.

Yield curve: A line that plots the interest rates of bonds having equal credit quality but differing maturity dates. A normal or steep yield curve indicates that long-term interest rates are higher than short-term interest rates. A flat yield curve indicates that short-term rates are in line with long-term rates, whereas an inverted yield curve indicates that short-term rates are higher than long-term rates.

Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus.

The viewpoints expressed by the individuals represents their assessment of the markets at the time of publication. Those views are subject to change without notice at any time. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. Past performance is no guarantee of future results. This communication is intended for informational purposes only.

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.

Index returns do not reflect transactions costs or the deduction of other fees and expenses and it is not possible to invest directly in an Index. Past performance is not indicative of future results.

The Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by the Manager. 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 the Manager. 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.

The ETFs referred to herein is not sponsored, endorsed, or promoted by MSCI and MSCI bears no liability with respect to the ETF or any index on which such ETF is based. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI has with the Manager and any related ETF.

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.

BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate.

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

This podcast presentation is for informational purposes only. No part of this presentation may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, recording or otherwise, without the written permission of BMO Investments Inc. or BMO Asset Management Inc. (collectively, BMO GAM) ).

For greater certainty, no part of this presentation may be provided to investors and/or potential investors without the written permission of BMO GAM. The information contained herein is not, and should not be construed as, investment advice and or tax advice to any individual. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. This communication is intended for information purposes only. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus. BMO GAM undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

The viewpoints expressed by the Portfolio Manager represents their assessment of the markets at the time of publication. Those views are subject to change without notice at any time without any kind of notice. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. Past performance is no guarantee of future results. This communication is intended for informational purposes only.

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 (if applicable) all may be associated with investments in BMO ETFs and ETF Series of the BMO Mutual Funds. Please read the ETF facts or prospectus of the relevant BMO ETF or ETF Series before investing. BMO ETFs and ETF Series 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 or ETF Series of the BMO Mutual Funds, please see the specific risks set out in the prospectus. BMO ETFs and ETF Series 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. ETF Series of the BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc. and BMO Investments Inc.
®/™Registered trade-marks/trade-mark of Bank of Montreal, used under licence.