In response to growing demand for ESG investment products from Canadian investors, BMO Asset Management today announced the introduction of a suite of new ESG-focused ETFs for investors in the Toronto Stock Exchange (TSX).
The new products include BMO Balanced ESG ETF, the first balanced Canadian ESG ETF. Four of the new products are MSCI equity index-based ETFs, following the best in class approach of the MSCI ESG Leaders Index, that target the top 50 percent of ESG-rated equities within their respective sectors, and exclude controversial industries, such as such as alcohol, gambling, tobacco, and weapons.
BMO’s new ESG ETFs also include 2 corporate bond index ETFs, a global high dividend yield ETF, and a premium yield ETF.
Kevin Gopaul, Global head of ETFs and BMO Global Asset Management commented, “As an asset manager we have a responsibility to drive and encourage positive change, from active ownership and ESG integration across investments, to product development. This launch of ESG ETFs delivers the full range of solutions and an all-in-one-basket across broad markets that aligns with BMO’s responsible investing strategy.”
Along with the announcement of the new investment products, BMO released the results of an investor survey, showing significant interest among Canadian and US high income and high net worth investors in ESG investing and sustainable business practices. In it’s press release, BMO highlighted:
“Initial results of BMO Asset Management’s ESG Beliefs and Behaviors Survey found 78 per cent of high income and high net worth investors are ESG leaning, with 22 per cent actively investing in ESG and 72 per cent strongly agreeing that companies can have positive impact and make a profit. Further, 68 per cent of the respondents strongly agreed that companies should be held accountable for good management and sustainable business practices.”