BMO Launches New Target Maturity Bond ETFs, Expanding its Fixed Income Options for Canadian Investors

TORONTO, March 21, 2025 /CNW/ - BMO Asset Management Inc. ("BMOAM Inc."), the manager of the BMO ETFs and Canada's largest fixed income ETF provider[1], today announced the launch of three new BMO Target Maturity Bond ETFs.

The BMO Target Maturity Bond ETFs combine the benefits of traditional bond ETFs, such as diversification and professional management, with the advantages of individual bonds, including defined term to maturity. These benefits may help investors with goal setting or matching maturity dates with investment time horizons, for expenses like funding post-secondary education or saving for a major purchase like a home.

The BMO Target Maturity Bond ETFs are different from traditional target maturity bond ETFs. Traditional target maturity bond ETFs are subject to reinvestment risk, which is the risk that the proceeds from maturing bonds will be invested in instruments that have an unknown future interest rate. The BMO Target Maturity Bond ETFs are designed to seek to provide income for a fixed period during the year of maturity and to minimize reinvestment risk. By using derivatives, the interest rates for the final year of maturity are locked-in upon the BMO Target Maturity Bond ETF's inception.

"The BMO Target Maturity Bond ETFs give investors another fixed income option, allowing them to tailor their overall mix of fixed income investments more effectively," said Matt Montemurro, Head of Fixed Income and Equity Index ETFs, BMO Global Asset Management. "BMO Target Maturity Bond ETFs offer investors a bond-like experience with the liquidity and diversification benefits of an ETF."

Three new BMO Target Maturity Bond ETFs:

• BMO Target 2027 Canadian Corporate Bond ETF (TSX: ZXCO)
• BMO Target 2028 Canadian Corporate Bond ETF (TSX: ZXCP)
• BMO Target 2029 Canadian Corporate Bond ETF (TSX: ZXCQ)

Each of BMO Target 2027 Canadian Corporate Bond ETF, BMO Target 2028 Canadian Corporate Bond ETF and BMO Target 2029 Canadian Corporate Bond ETF has closed its initial offering of exchange traded units and is today listed and trading on the Toronto Stock Exchange.

BMO Target 2027 Canadian Corporate Bond ETF seeks to provide income for a limited period of time ending on or about November 19, 2027 or an earlier date upon not fewer than 60 days' notice to unitholders (for the purposes of this Fund, the "Fund Maturity Date") by investing primarily in investment-grade debt instruments of issuers in Canada that have an effective maturity in 2027, and by using derivatives to implement a hedging strategy designed to minimize reinvestment risk in 2027 as a result of staggered bond maturity dates.

BMO Target 2028 Canadian Corporate Bond ETF seeks to provide income for a limited period of time ending on or about November 24, 2028 or an earlier date upon not fewer than 60 days' notice to unitholders (for the purposes of this Fund, the "Fund Maturity Date") by investing primarily in investment-grade debt instruments of issuers in Canada that have an effective maturity in 2028, and by using derivatives to implement a hedging strategy designed to minimize reinvestment risk in 2028 as a result of staggered bond maturity dates.

BMO Target 2029 Canadian Corporate Bond ETF seeks to provide income for a limited period of time ending on or about November 30, 2029 or an earlier date upon not fewer than 60 days' notice to unitholders (for the purposes of this Fund, the "Fund Maturity Date") by investing primarily in investment-grade debt instruments of issuers in Canada that have an effective maturity in 2029, and by using derivatives to implement a hedging strategy designed to minimize reinvestment risk in 2029 as a result of staggered bond maturity dates.

Further information can be found at BMO ETF Centre.

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

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.

All investments involve risk. The value of an ETF can go down as well as up and you could lose money. The risk of an ETF is rated based on the volatility of the ETF's returns using the standardized risk classification methodology mandated by the Canadian Securities Administrators. Historical volatility doesn't tell you how volatile an ETF will be in the future. An ETF with a risk rating of "low" can still lose money. For more information about the risk rating and specific risks that can affect an ETF's returns, see the BMO ETFs' simplified prospectus.

"BMO (M-bar roundel symbol)" is a registered trademark of Bank of Montreal, used under licence.

About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.5 trillion as of January 31, 2025. 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.

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¹ Source: Bloomberg as of January 31, 2025

SOURCE BMO Financial Group

Media Contact: Aaron Sobeski, Toronto, [email protected], [phone]