BMO Finanical Group – historically Banque de Montreal – has entered the Canadian ETF market with today’s launch of four new funds, and plans for three more. The TSE listed funds track Canadian and American markets, carry very low expense ratios, and follow the latest trend in Canadian ETFs – built-in hedging against the declining US dollar.

The Canadian ETF market is currently split between homegrown BetaPro, the American Claymore and the British iShares. BMO is Canada’s oldest bank and its fourth largest by deposits. Its entrance into the ETF space marks Bay Street’s first foray into the booming market.

The four funds listed today are:

• BMO Canadian Government Bond Index (BGB), which is designed to replicate the performance of the Citigroup Canadian Government Bond Index.
• BMO Dow Jones Canada Titans 60 Index (BCA), which is designed to replicate the performance of the Dow Jones Canada Titans 60 Index.
• BMO US Equity Index (BUE) which is designed to replicate the performance of the Dow Jones U.S. Large-Cap Index.
• BMO Dow Jones DiamondsSM Index (BDJ), which is designed to replicate the performance of the Dow Jones Industrial Average.

and the three to come:

• BMO International Equity Index
• BMO Emerging Markets Equity Index
• BMO Global Infrastructure Index