BMO Short Federal Bond Index ETF
ZFS
BMO EXCHANGE TRADED FUNDS
FUND DETAILS
Portfolio Strategy
Ticker
ZFS
Exchange
TSX
Inception Date
Maximum Annual
Management Fee
10/20/2009
0.20%
RSP Eligible
Y
DRIP Eligible
Y
Distribution Freq
Monthly
FUND CHARACTERISTICS
As of October 31, 2011
Number of Securities
25
Weighted Avg Term
Maturity
2.6
Weighted Avg Coupon
(%)
2.9
Weighted Avg Current
Yield (%)
2.8
Weighted Avg Yield to
Maturity (%)
1.2
Weighted Avg Duration
2.5
The BMO Short Federal Bond Index ETF has been designed to replicate, to the extent possible, the
performance of the DEX Short Term Federal Bond Index, net of expenses. The Fund invests in a
variety of debt securities primarily with a term to maturity between one and five years. Securities
held in the Index are generally issued or guaranteed by the Government of Canada, by various
agencies of the Government of Canada, and by various instrumentalities that have been established
or sponsored by the Government of Canada.
Benchmark Info
The DEX Short Term Federal Bond Index consists of semi-annual pay fixed rate bonds denominated
in Canadian dollars, with an effective term to maturity less than five years and greater than one
year, a credit rating of AAA and minimum size requirement of $50 million per issue. The federal
sector consists of bonds issued by the Government of Canada (including both non-agency,
agency/crown corporations) and supranational entities. Each security in the index is weighted by its
relative market capitalization and rebalanced on a daily basis.
Index Performance - DEX Short Term Federal Bond Index
Fund Benefits
- Provides convenient and
efficient exposure to short-term
Canadian federal fixed income
issues.
- Offers the convenience of an
exchange traded security on
the TSX; including the use of
limit orders.
- Provides excellent transparency
through intra-day trading prices
and daily portfolio composition.
- Delivers investment flexibility
by enabling investors to trade
whenever the TSX is open.
The underlying securities of
ZFS have large daily trade
volumes which represents the
ETF's true liquidity.
Source: DEX, 2009
Top 10 Holdings (%) as of October 31, 2011
Government of Canada 3.5% 06/01/2013
Government of Canada 2.5% 06/01/2015
Government of Canada 3.0% 06/01/2014
Canada Housing Trust 4.55% 12/15/2012
Government of Canada 4.0% 06/01/2016
Government of Canada 1.75% 03/01/2013
Government of Canada 2.5% 09/01/2013
Canada Housing Trust 2.45% 12/15/2015
Government of Canada 2.0% 12/01/2014
Government of Canada 2.0% 03/01/2014
9.2
8.6
7.9
6.2
5.9
5.0
4.5
4.0
4.0
3.9
BMO Short Federal Bond Index ETF
ZFS
BMO EXCHANGE TRADED FUNDS
CORRELATION
(Based on 10 years return data
as of September 30, 2011)
DEX Short Term Federal
Bond Index
DEX Short Term Overall
Bond Index
0.98
DEX Overall Bond Index
0.83
US HY Corporate Bonds
CAD Hedged
-0.23
Canadian Large Cap
Equity
-0.32
US Large Cap Equity CAD
Hedged
-0.27
International Equity
CAD Hedged
-0.32
Emerging Markets
Equity
-0.13
Source: DEX, S&P, Bloomberg
Fund Performance for Period Ending: October 31, 2011
1 mo
3 mo
YTD
1 yr
Since Inception
-0.22
1.44
3.80
3.23
3.46
For more information, including how to purchase BMO ETFs,
please contact Client Services at 1-800-361-1392 or visit bmo.com/etfs
Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the prospectus before investing. The funds are not guaranteed, their values change
frequently and past performance may not be repeated.
This communication is intended for informational purposes only and is not, and should not be construed as, investment and/or tax advice to any individual. Particular investments and/or trading strategies should
be evaluated relative to each individuals circumstances. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment.
BMO ETFs are managed by BMO Asset Management Inc., an investment counsel firm and separate legal entity from the Bank of Montreal.
® Registered trade-marks of Bank of Montreal, used under licence.