Glossary

Active Investing:

An investing approach that aims to identify and invest in securities that may be mispriced by the market with the view of generating enhanced returns. It's a strategy that can involve amongst other things, in-depth analysis of companies' financial statements and significant understanding of various markets and companies from around the world.

Asset Class:

A type of investment such as stocks, bonds, real estate or cash.

Benchmark Index:

A standard against which the performance of a security or mutual fund can be measured. Generally, broad market indexes are used for this purpose.

Bond:

A debt instrument promising to pay its holders periodic interest (or coupon) payments on a fixed amount of principal and maturity.

Cash and Cash equivalents:

This asset class includes money market instruments and are short-term, highly liquid, low risk and relatively low return investment holdings.

Distribution Frequency:

The amount of times during a year that a mutual fund pays distributions to unitholders. This is typically monthly, quarterly or annually.

Equity (Stock):

Shares of ownership in a company.

Inception Date:

The date that a fund became available for sale to investors.

Investment Objectives:

Included in the prospectus and fund facts, the fund's objective outlines the goals of the fund.

Manager:

BMO Asset Management, a Canadian investment manager responsible for providing managerial, administrative and compliance services to the BMO ETFs.
(ETF)

Management Expense Ratio (MER):

The management expense ratio is the total annual fee charged by the fund to pay for the costs associated with running the fund. It includes the management fee, operating expenses and applicable taxes. It does not include the Trading Expense Ratio (TER). It is expressed as an annualized percentage of the average net asset value of the funds.

NAV:

The NAV or Net Asset Value of an ETF is the total assets of the BMO ETF less the value of the total liabilities of the BMO ETF, as at a specific date.

NAV per Unit:

The NAV or Net Asset Value of an ETF is the net asset value per unit, calculated by dividing the NAV of the BMO ETF by the total number of units outstanding.

Passive Investing:

An investing approach that provides access to a broad market, for example, through an index fund or exchange traded fund (ETF) that typically tracks the performance of a market index.

Portfolio Manager:

Registered individual who has the discretion to manage the securities investments of an ETF, model portfolio, or investment account manages the assets and expenses of a mutual fund according to the fund's objectives.

Year to Date (YTD) Return:

As at a specific date during a calendar year, the rate of return beginning January 1st of that calendar year to the specific date.