BMO GAM unveils emerging markets income ETF

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BMO Global Asset Management has launched an emerging markets ETF to sit within its Income Leaders range.

The BMO MSCI Emerging Markets Income Leaders UCITS ETF is managed by BMO Global Asset Management’s London-based team which leverages the firm’s ETF capabilities in Canada and Hong Kong.

Listed on the London Stock Exchange, the ETF has an OCF of 0.38 per cent per annum.

The suite also includes income-focused UK, US and European equity ETFs created with index provider MSCI. The indices screen for quality and the highest dividend yields to find companies with “long-term sustainable business models”.

Marc Knowles, director of ETFs Europe, says: “Investors are thoughtful about how they best allocate their portfolios to emerging markets. Emerging market equities have historically been more volatile than those in developed markets and more sensitive to swings in the US dollar.

“Investments in quality companies with lower debt levels can help to reduce the portfolio volatility and deliver enhanced risk adjusted returns. Furthermore, a company’s stable earnings stream is a good indicator that they are better suited to cope with market shocks. Our Emerging Markets Income Leader ETF is constructed to help investors meet these challenges.”

Rob Thorpe, head of UK intermediary, BMO Global Asset Management (EMEA), adds: “As the low yield, low interest rate environment continues, investors’ focus on yield coupled with their concerns around volatility are only intensifying. At BMO Global Asset Management, our priority is to innovate and seek solutions to the challenges that investors are faced with and that is why we have created our ETF range to be fully aligned with investors’ needs.”