TORONTO, ONTARIO — (Marketwire) — 12/05/11 — BMO Investments Inc. (BMO II) today announced the results of a study which examined the level of awareness among Canadian investors around Exchange Traded Funds (ETFs), which are securities that can track indexes but are traded like stocks. The study revealed that, while only 18 per cent of respondents are familiar with ETFs, three-quarters (74 per cent) – after being told of the benefits ETFs have to offer – said they would consider adding them to their investment portfolios.
“Although ETFs have been around for only 20 years, they-re gaining in popularity and we believe they are poised to take off in Canada,” said Serge Pepin, Head of Investments, BMO Investments Inc. “Investors value the various benefits that ETFs have to offer, including lower costs, transparency, tax efficiencies, investment flexibility and diversity.”
The study, by Leger Marketing, also revealed the key barriers preventing Canadians from holding ETFs in their portfolios. These include:
“Being a relatively new investment option, it-s only natural that many investors remain unsure how to effectively integrate ETFs into their investment portfolios,” continued Mr. Pepin. “Many are attracted to ETFs, but a lack of knowledge may make them hesitate when adding them to their investments. This is one of the reasons why we introduced our BMO ETF Portfolios, which enable investors to enter the ETF market through the ease and simplicity of a mutual fund.”
Among those surveyed, almost two-thirds (65 per cent) indicated that, if they could get all the advantages of ETFs in the convenience of a mutual fund that is managed by a financial professional, they would be more likely to add them to their portfolio.
BMO II-s ETF Portfolios give investors access to the benefits of ETFs through easy-to-use mutual fund classes. BMO II-s offers four BMO ETF portfolios and two tactical class BMO ETF portfolios. These include:
BMO ETF Risk-Differentiated Portfolios:
BMO Tactical ETF Classes:
The online survey was commissioned by BMO Asset Management Inc. that manages and administers exchange traded funds. It was conducted by Leger Marketing from November 21 to November 24, 2011, with a sample of 1520 Canadians, 18 years of age or older.
BMO ETF Portfolios are offered by BMO Investments Inc., a financial services firm and separate legal entity from the Bank of Montreal.
Commissions, trading commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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514-877-8224
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