Toronto-based BMO Asset Management Inc. (BMO AM) announced a change to BMO S&P/TSX Laddered Preferred Share Index ETF’s underlying index, resulting in a new name for the exchange-trade fund (ETF).
On or about Oct. 19, the ETF will track the performance of the Solactive Canadian preferred share index as opposed to its current tracking of the S&P/TSX preferred share laddered index. The ETF’s name will change to BMO Laddered Preferred Share Index ETF.
With this move, the index provider will change to Solactive AG, which is based in Frankfurt, Germany.
BMO AM notes that the new index aligns with the ETF’s current investment objectives and strategy; the ETF will also provide investors with substantially the same index exposure as the current index.
One difference between the current index and the new index is the S&P/TSX preferred share laddered index is rebalanced on a quarterly basis while the Solactive Canadian preferred share index is rebalanced on a monthly basis, according to BMO AM’s announcement.