BMO Global Asset Management has expanded its ‘Income Leaders’ suite of ETFs for UK investors with the launch of the new BMO MSCI Emerging Markets Income Leaders Ucits ETF.
Investors can now allocate portfolios to emerging markets, UK, US and European markets through the equity ETF range, which has been developed to target quality income in response to the evolving needs of investors.
BMO Global Asset Management’s ‘Income Leaders’ range of equity ETFs has been developed together with index provider MSCI, to provide investors with sustainable income from high calibre companies.
The indices take a multi-factor approach, first screening stocks for quality (companies that exhibit good return on equity, stable earnings growth and low financial leverage) and then for stocks with the highest dividend yields.
This strategy aims to select leading companies with long-term sustainable business models and clear competitive advantages.
The new EM ETF is listed on the London Stock Exchange with a GBP trading currency at 0.38% per annum OCF.
The ETF is managed by BMO Global Asset Management’s London-based team who have an average of 13 years of experience in index and factor-based investing.
“Emerging market equities have historically been more volatile than those in developed markets and more sensitive to swings in the US dollar. Investments in quality companies with lower debt levels can help to reduce the portfolio volatility and deliver enhanced risk adjusted returns. Furthermore, a company’s stable earnings stream is a good indicator that they are better suited to cope with market shocks. Our Emerging Markets Income Leader ETF is constructed to help investors meet these challenges,” said Marc Knowles, BMO’s director of ETFs Europe.