BMO Discount Bond Index ETF

BMO Discount Bond Index ETF is an exchange-traded fund focused on providing exposure to the Canadian fixed income market. Its primary purpose is to replicate the performance of the FTSE Canada Universe Discount Bond Index by holding a diversified portfolio of Canadian dollar-denominated, investment-grade bonds rated BBB or higher. The fund invests in a broad mix of government, provincial, and corporate bonds, all with maturities exceeding one year and typically priced at or below par value. This approach aims to offer efficient access to discount bonds, which can be particularly relevant for investors seeking to minimize taxable interest income. The ETF is managed by BMO Asset Management Inc., known for its disciplined, rules-based investment process. Key features include a low management expense ratio, monthly distributions, and generally low volatility. BMO Discount Bond Index ETF plays a significant role in the Canadian market as a tool for income generation and portfolio diversification within fixed income, serving both individual and institutional investors seeking broad exposure to high-quality Canadian bonds while paying attention to after-tax returns.