BMO Laddered Preferred Share Index ETF (CAD Units)

The BMO Laddered Preferred Share Index ETF (CAD Units) is a financial product that offers investors exposure to a diversified portfolio of Canadian preferred shares. The primary function of the ETF is to provide income generation while mitigating interest rate risk through its laddered structure. This structure involves holding preferred shares with varying maturity dates, which helps balance income stability against the volatility caused by interest rate fluctuations. As a part of Canada's capital markets, BMO's ETF also plays a critical role by enabling investors to gain indirect access to preferred shares without the need to individually select these instruments. It impacts various sectors such as financial services, utilities, and real estate, as these typically issue preferred shares to enhance capital structures. With its underlying index tracking performance, this ETF is significant in providing investors with a cost-effective and liquid avenue to achieve a steady income stream, thus contributing to the robustness and diversification of investment portfolios.