Comments on: BMO expands its ETF line up (again)

By: Financial Cents

Financial Cents — Tue, 26 Jan 2010 23:53:03 +0000

I prefer XBB or XSB to any of the above for my fixed income, although the MERs are very competitive. Thanks for the news and post CC.

By: Potato

Potato — Tue, 26 Jan 2010 16:31:47 +0000

JC should read your articles on currency hedging.

By: Canadian Capitalist

Canadian Capitalist — Tue, 26 Jan 2010 15:58:53 +0000

@Chris: I haven’t seen any advertising but I won’t count out BMO just yet. They could sell these ETFs to their discount brokerage customers and Jon Chevreau notes that they have garnered a 1% market share (which isn’t shabby at all). However, I can’t see myself investing in a lot of these ETFs…

@Big Chutzpah Man: The breakup of world markets ex-Canada is approx. 45% US, 45% Developed and 10% Emerging. Investing in foreign markets does have diversification benefits and lowers the volatility of the portfolio.

@2 cents: I didn’t check the holdings of the Utility ETF. It will be a good bet that the yield will decrease as trusts get taxed next year or they convert to corporations.

By: Chris

Chris — Tue, 26 Jan 2010 14:33:33 +0000

It looks like BMO is making these things up faster than they can sell them! With market caps between 5 and 20 million and low trading volume, its tough to see how these can be money makers. Do you know if there has been any advertising?

By: Big Chutzpah Man

Big Chutzpah Man — Tue, 26 Jan 2010 14:32:11 +0000

Interesting stuff, it always makes me nervous investing money in International Funds (I have some, but not much in an Index with TD, and I almost feel like that money is very high risk). Not sure, why I think this.

By: 2 Cents @ Balance Junkie

2 Cents @ Balance Junkie — Tue, 26 Jan 2010 12:55:28 +0000

Interesting . . . I wonder what effect the looming income trust conversion will have on ETFs like the Utilities Index fund. It looks like about half of the holdings are trusts.