Precision investment engineering
with BMO Enhanced Income Equity ETFs

Our new Enhanced Income Equity ETFs offer equity exposure to three major market indices, utilising covered call options to provide an enhanced, sustainable yield and a smoother return profile than their respective index.

•             BMO Enhanced Income UK Equity UCITS ETF

•             BMO Enhanced Income Euro Equity UCITS ETF

•             BMO Enhanced Income USA Equity UCITS ETF

BMO ETFs are carefully constructed to target desired levels of income and risk, helping you achieve diversification and stability of income in your portfolio with precise investment engineering. Our enhanced income strategy looks to achieve index like returns over the long term, with reduced volatility and higher yield. We target a yield enhancement of 2 – 4% over the chosen equity benchmark across our suite.

In the UK the three new ETFs increase our product range in EMEA from 10 to 13 funds. As a global asset manager we continue to seek opportunities to leverage on our successes across all markets.

Our ETF investment specialists

We launched our first ETF in Toronto in 2009 and we now have over 100 ETF listings globally, with £23.5bn assets under management across our Systematic and ETF strategies (as at 31 May 2017). We became the first Canadian bank to offer ETFs in Europe with the launch of our European range in November 2015. With the addition of the new Enhanced Income ETFs, the range now comprises 13 ETFs.

Terry Wood

Terry Wood, CFA

Head of ETF Portfolio Management (EMEA)

Alex Jones

Alex Jones

Fund Manager,
Systematic Strategies

Chris Mchaney

Chris McHaney, CFA

Vice President, Portfolio Manager
Global Structured Investments

Our investment objective

Watch our video to learn more

Investors are looking for alternative ways to generate sustainable income without taking on additional risk. Enhanced Income Strategies, also known as covered call strategies, are efficient solutions that can add income to a portfolio without increasing the equity risk.

ETFs are an efficient way to access an enhanced income strategy combining passive equity portfolio management and a rules-based options overlay methodology, at a low cost.

BMO Enhanced Income Equity ETFs provide equity exposure with a sustainable attractive yield and lower volatility than a traditional market capitalisation weighted index.

Our distinctive strategy

Watch our webinar

Join Chris and Terry in this webinar. Chris will introduce a new ETF strategy through the lens of a Canadian portfolio manager. Terry will then discuss the new launch of our BMO Enhanced Equity ETFs and how they maximise yield and reduce volatility.

Date: 19 July 2017
Time: 2pm

Watch our webinar playback  

The Enhanced Income strategy is implemented by selling call options on the index, while owning the underlying stocks. This allows the portfolio to generate income from the written call option premiums in addition to the dividend yield from the underlying stocks. Option-based strategies take advantage of the supply-demand imbalance that exists between investors looking to hedge their equity positions and the lower number of hedge providers. This allows the fund to harvest the volatility risk premium and generate income for investors while managing the downside risk.

Historically, covered call strategies have provided a similar long-term performance to the broad market with lower risk.

For further information on our BMO Enhanced Income Equity ETFs.
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Contact us

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