- New index suite for Canadian market participants that captures targeted exposure to global sectors while applying a rules-based methodology to minimize associated currency risk
- Indexes measure large and mid cap companies in global sectors of developed countries of the Russell Global Index Series
- BMO Global Asset Management launches 4 sector ETFs tracking these indices
FTSE Russell announces the launch of four new benchmarks within the Russell Global Indexes. The Russell Developed Large Cap 100% Hedged to CAD indices are designed for Canadian market participants and capture specific global sector exposures:
- Russell Developed Large Cap Consumer Staples Capped 100% Hedged to CAD Index
- Russell Developed Large Cap Consumer Discretionary Capped 100% Hedged to CAD Index
- Russell Developed Large Cap Banks Capped 100% Hedged to CAD Index
- Russell Developed Large Cap Insurance Capped 100% Hedged to CAD Index
Following the launch, BMO Global Asset Management has released sector ETFs tracking each benchmark:
- BMO Global Consumer Staples Hedged to CAD Index ETF (TMX: STPL)
- BMO Global Consumer Discretionary Hedged to CAD Index ETF (TMX: DISC)
- BMO Global Banks Hedged to CAD Index ETF (TMX: BANK)
- BMO Global Insurance Hedged to CAD Index ETF (TMX: INSR)
Ken O’Keeffe, Managing Director, Global Head of ETFs at FTSE Russell, said:
“After recognizing a growing desire among Canadian market participants for an index suite that captures global sector exposures in a targeted way, we are delighted to roll out this new suite of indices, further strengthening our Canadian index offering. We’re also thrilled BMO Global Asset Management has chosen to partner with us to use these indices as the basis of their new sector ETFs.”
Kevin Gopaul, Head of BMO Global Asset Management Canada, Global Head of ETFs and CIO at BMO Global Asset Management, said:
“We are excited to have partnered with FTSE Russell to enhance our suite of sector ETFs,” said Kevin Gopaul, Head, BMO Global Asset Management Canada, Global Head of ETFs and Chief Investment Officer, BMO Asset Management Inc. “We have focused on key global exposures, Consumer Discretionary and Consumer Staples, where there is growing consumer purchasing power, Banks which provides access to global economic growth and Insurance which can benefit in a rising interest rate environment.”
Fact sheets including more information on the Russell Developed Large Cap 100% Hedged to CAD indices can be found here.
