BMO discount bond index ETF was developed to invest in the securities, presented in FTSE Canada Universe Discount Bond Index.
Thus, the securities of the Fund are usually invested in corporate, municipal, and federal bonds with a maturity of over 1 year.
The characteristics of the Fund are:
- the coupon rate is equal to or less than 1.2 times the rate to maturity of the security
- credit rating of the investment securities is BBB or higher
- tax-efficient revenue
- the term of securities is often over 1 year
- investments to long-term federal bonds
More information about the fund of Bank of Montreal Harris in Canada can be found at the bank's site.