BMO Long Federal Bond Index ETF (ZFL:CA)
The BMO Long Federal Bond Index ETF has been designed to replicate, to the extent possible, the performance of the FTSE TMX Canada Long Term Federal Bond Index, net of expenses. The Fund invests in a variety of debt securities primarily with a term to maturity greater than ten years. Securities held in the Index are generally issued or guaranteed by the Government of Canada, by various agencies of the Government of Canada, and by various instrumentalities that have been established or sponsored by the Government of Canada.
The FTSE TMX Canada Long Term Federal Bond Index consists of semi-annual pay fixed rate bonds denominated in Canadian dollars, with an effective term to maturity greater than ten years, a credit rating of AAA and minimum size requirement of $50 million per issue. The federal sector consists of bonds issued by the Government of Canada (including both non-agency, agency/crown corporations) and supranational entities. 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 a 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 - over 187% in 2016. This ETF is said to track an established index, but given the extreme PTR, maybe it's the index's that is designed for active management, active traders?
Index Note: This ETF was originally established to track the performance of the DEX Long Term Federal Bond Index. This was changed and the ETF now tracks the FTSE TMX Canada Long Term Federal Bond Index.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- FTSE TMX Canada Long Term Federal Bond Index
- Asset Category
- Fixed Income Investments
- Average Duration
- 15.30 Years (September 30, 2017)
- Average Maturity
- 22.50 Years (September 30, 2017)
- Date Established
- May 19, 2010
- Annual Management Fee
- 0.20% plus 0.03% in Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.00% (2016)
- Management Expense Ratio (MER)
- 0.23% (2016)
- Additional Performance Fee(s)
- Yes - In 2016, the ETF had a yield equal to 2.84% 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 187.49% in 2016, 59.78% in 2015, 47.95% in 2014, 61.83% in 2013, 40.92% in 2012, 103.43% in 2011 & 31.70% in 2010
- Simplified Prospectus
- Last Updated