BMO Global Asset Management (BMO GAM) has launched an emerging markets income ETF for UK investors, bringing its ETF range available in London to ten.
The BMO MSCI Emerging Markets Income Leaders Ucits ETF is part of the firm’s Income Leaders range.
BMO GAM became the first Canadian bank to launch ETFs in Europe in November 2015 following its acquisition of F&C.
The Income range targets “quality income” from UK, US, European, and now emerging market companies.
MSCI, an index provider, helped develop the range and the indices screen for companies with attributes such as low leverage and high dividend yield.
“Investments in quality companies with lower debt levels can help to reduce the portfolio volatility and deliver enhanced risk adjusted returns,” said Marc Knowles, director of ETFs Europe.
The indices also screen for companies with stable earnings, which Knowles said indicated resilience to financial stocks.
The ETF is registered on the London Stock Exchange, trades in sterling, and charges 0.38% per annum.
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