1. Explain 2 differences between both of these funds to highlight to your client the key areas...
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1. Explain 2 differences between both of these funds to highlight to your client the key areas that differentiate the funds.
2. If you were to invest in either fund knowing your research which fund would you choose to invest in and why?
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This document contains key information you should know about BMO Tactical Dividend ETF Fund. You can find more details in the fund's simplified prospectus. Ask your representative for a copy, contact BMO Investments Inc. at 1-800-665-7700 or mutualfunds@bmo.com or visit www.bmo.com/gam/ca/advisor/legal-and-regulatory. Before you invest in any fund, you should consider how it would work with your other investments and your tolerance for risk. Quick facts Fund code(s): Date series started: Total value of fund on March 31, 2022: Management expense ratio (MER): BMO Europe High Dividend Covered Call ETF BM070734 August 12, 2013 $278.5 Million 1.86% What does the fund invest in? This fund's objective is to provide long term capital growth and current income by investing primarily in a diversified portfolio of exchange traded funds that invest in income producing securities. The fund's asset mix may be changed over time to reflect the portfolio manager's outlook for each asset class. The fund may invest up to 100% of the fund's assets in foreign securities. 4. Wisdom Tree Emerging Markets High Dividend Fund 5. SPDR S&P Emerging Markets Dividend ETF The charts below give you a snapshot of the fund's investments on March 31, 2022. The fund's investments will change. Top 10 investments (March 31, 2022) 1. BMO International Dividend ETF 2. 3. BMO Premium Yield ETF 6. WisdomTree Emerging Markets SmallCap Dividend Fund 7. iShares Emerging Markets Dividend ETF 8. Cash/Receivables/Payables 9. S&P 500 Index, Put Option, Dec 30, 2022, $4,550.00 10. S&P 500 Index, Put Option, Dec 30, 2022, $4,450.00 Total percentage of top 10 investments 102.3% Total number of investments: 16 31.9% 21.7% 20.6% 8.8% 8.7% 3.5% 3.1% 1.7% 1.2% 1.1% Fund manager: Portfolio manager(s): BMO Investments Inc. Quintessence Wealth Distributions: Monthly (any net income) and in December (any net capital gains) $500 initial, $50 additional How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund's returns change over time. This is called "volatility". Minimum investment: In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Investment mix (March 31, 2022) Low Portfolio Allocation Low to Medium 53.6% International Equity Funds 24.1% Emerging Markets Equity Funds Risk rating BMO Investments Inc. has rated the volatility of this fund as low to medium. This rating is based on how much the fund's returns have changed from year to year. It doesn't tell you how volatile the fund will be in the future. The rating can change over time. A fund with a low risk rating can still lose money. 20.6% U.S. Equity Fund 1.7% Cash/Receivables /Payables 1.4% Put Options -1.4% Call Option Medium Medium to High High For more information about the risk rating and specific risks that can affect the fund's returns, see the "What are the risks of investing in a mutual fund?" section of the fund's simplified prospectus. No guarantees Like most mutual funds, this fund doesn't have any guarantees. You may not get back the amount of money you invest. How has the fund performed? This section tells you how Series A units of the fund have performed over the past 8 calendar years. Returns are after expenses have been deducted. These expenses reduce the series' returns. This document contains key information you should know about BMO Tactical Dividend ETF Fund. You can find more details in the fund's simplified prospectus. Ask your representative for a copy, contact BMO Investments Inc. at 1-800-665-7700 or mutualfunds@bmo.com or visit www.bmo.com/gam/ca/advisor/legal-and-regulatory. Before you invest in any fund, you should consider how it would work with your other investments and your tolerance for risk. Quick facts Fund code(s): Date series started: Total value of fund on March 31, 2022: Management expense ratio (MER): BMO Europe High Dividend Covered Call ETF BM070734 August 12, 2013 $278.5 Million 1.86% What does the fund invest in? This fund's objective is to provide long term capital growth and current income by investing primarily in a diversified portfolio of exchange traded funds that invest in income producing securities. The fund's asset mix may be changed over time to reflect the portfolio manager's outlook for each asset class. The fund may invest up to 100% of the fund's assets in foreign securities. 4. Wisdom Tree Emerging Markets High Dividend Fund 5. SPDR S&P Emerging Markets Dividend ETF The charts below give you a snapshot of the fund's investments on March 31, 2022. The fund's investments will change. Top 10 investments (March 31, 2022) 1. BMO International Dividend ETF 2. 3. BMO Premium Yield ETF 6. WisdomTree Emerging Markets SmallCap Dividend Fund 7. iShares Emerging Markets Dividend ETF 8. Cash/Receivables/Payables 9. S&P 500 Index, Put Option, Dec 30, 2022, $4,550.00 10. S&P 500 Index, Put Option, Dec 30, 2022, $4,450.00 Total percentage of top 10 investments 102.3% Total number of investments: 16 31.9% 21.7% 20.6% 8.8% 8.7% 3.5% 3.1% 1.7% 1.2% 1.1% Fund manager: Portfolio manager(s): BMO Investments Inc. Quintessence Wealth Distributions: Monthly (any net income) and in December (any net capital gains) $500 initial, $50 additional How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund's returns change over time. This is called "volatility". Minimum investment: In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Investment mix (March 31, 2022) Low Portfolio Allocation Low to Medium 53.6% International Equity Funds 24.1% Emerging Markets Equity Funds Risk rating BMO Investments Inc. has rated the volatility of this fund as low to medium. This rating is based on how much the fund's returns have changed from year to year. It doesn't tell you how volatile the fund will be in the future. The rating can change over time. A fund with a low risk rating can still lose money. 20.6% U.S. Equity Fund 1.7% Cash/Receivables /Payables 1.4% Put Options -1.4% Call Option Medium Medium to High High For more information about the risk rating and specific risks that can affect the fund's returns, see the "What are the risks of investing in a mutual fund?" section of the fund's simplified prospectus. No guarantees Like most mutual funds, this fund doesn't have any guarantees. You may not get back the amount of money you invest. How has the fund performed? This section tells you how Series A units of the fund have performed over the past 8 calendar years. Returns are after expenses have been deducted. These expenses reduce the series' returns.
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ANSWER Based on the information provided there are a few key differences between the BMO Tactical Dividend ETF Fund and the BMO Balanced Fund 1 Invest... View the full answer
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