BMO Mid Corporate Bond Index ETF (ZCM:CA)
BMO Mid Corporate Bond Index ETF has been designed to replicate, to the extent possible, the performance of the FTSE TMX Canada Mid Term Corporate Bond Index, net of expenses. The Fund invests in a variety of debt securities primarily with a term to maturity between five and ten years. Securities held in the Index are generally corporate bonds issued domestically in Canada in Canadian dollars, with an investment grade rating.
The FTSE TMX Canada Mid Term Corporate Bond Index consists of semi-annual pay fixed rate corporate bonds denominated in Canadian dollars, with an effective term to maturity between five and ten years, a credit rating of BBB or higher and minimum size requirement of $100 million per issue. The corporate sector is divided into sub-sectors based on major industry groups: Financial, Communication, Industrial, Energy, Infrastructure, Real Estate and Securitization. Each security in the index is weighted by its relative market capitalization and rebalanced on a daily basis
IFM Investment Tip:
For those investors looking for bond exposure in the longer dated maturities this ETF is not a good choice.
Distributions sometimes include a small Return of Capital (ROC) and the Portfolio Turnover Ratio (PTR) is extremely high for a bond ETF. This ETF is geared to track an established index, but given the high PTR, maybe the index's is designed for active management, active traders, - not conservative, buy and hold investors?
Index Note: This ETF was originally indexed to the DEX Mid Term Corporate Bond Index. The managers eventually switch the ETF to track the FTSE TMX Canada Mid Term Corporate Bond Index.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- FTSE TMX Canada Mid Term Corporate Bond Index.
- Asset Category
- Fixed Income Investments
- Average Duration
- 6.20 Years (September 30, 2017)
- Average Maturity
- 7.20 Years (September 30, 2017)
- Date Established
- January 19, 2010
- Annual Management Fee
- 0.30 plus 0.03% in Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.00% (2016)
- Management Expense Ratio (MER)
- 0.33% (2016)
- Additional Performance Fee(s)
- Yes - In 2016, the ETF had a yield equal to 3.13% net of Return of Capital (ROC) payments.
- Distribution Dates
- Monthly - toward the beginning of each month.
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes Visit ETF Website for details
- Rebalancing Frequency
- Portfolio Turnover Ratio
- Was 57.35% in 2016, 65.27% in 2015, 53.64% in 2014, 52.86% in 2013, 35.52% in 2012, 21.40% in 2011 & 39.16% in 2010.
- Simplified Prospectus
- Last Updated