As the Registered Retirement Savings Plan (RRSP) deadline looms, and Canadians continue to make contributions to their RRSPs, BMO Financial Group is reminding investors that mutual funds that invest in exchange-traded funds (ETFs) offer numerous benefits to investors, including diversification, flexibility and lower fees.
Last year, BMO Investments Inc. was the first financial services firm to introduce mutual fund portfolios made up of ETFs* at BMO Bank of Montreal branches. These portfolios provide investors with increased access to the ETF market by combining many of the benefits of ETFs with mutual funds – including cost-effectiveness, diversification, transparency and automatic rebalancing.
The portfolios make an ideal addition to an existing RRSP portfolio or as a centerpiece to a newly opened RRSP and are appropriate for all life stages.
- For investors who are approaching retirement, the BMO Security ETF Portfolio is a low-risk option that focuses on capital preservation. The investments within this portfolio are made up of primarily lower-risk asset classes, such as fixed income ETFs, and have a lower level of volatility.
- Those investors who are still a few years away from retirement should consider the BMO Balanced ETF Portfolio. The portfolio provides a balance of lower and higher-risk investments which exhibit a moderate level of volatility.
- Younger investors who are several years from retirement and have a higher tolerance for risk should look for long-term capital appreciation. The BMO Growth ETF Portfolio and BMO Aggressive Growth ETF Portfolio are the right choices for this group. The BMO Growth ETF Portfolio invests primarily in equity ETFs plus some fixed income ETFs. BMO Aggressive Growth ETF Portfolio holds equity ETFs allowing for a higher level of volatility, but also a higher potential for return.
“Once you’ve identified your investment objectives, risk tolerance and investment time horizon, these ETF portfolios can be an ideal complement to your investment strategy regardless of your life stage,” says Serge Pépin, Head of Investments, BMO Investments Inc.
To learn more about BMO’s mutual fund ETF portfolios, please visit:
*BMO Mutual Funds/BMO ETF Mutual Fund portfolios are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal. 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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