Low-Cost Core ETFs just got more accessible

By Michelle Allen, BMO ETFs

(Sponsor Blog)

Canadian investors have increasingly been turning to all-in-one ETF solutions that offer built-in diversification and periodic rebalancing. BMO is proud to deliver on our commitment to make our Asset Allocation ETFs even more accessible to Canadian investors. To deliver even greater value, we recently announced a reduction to the annual management fee from 0.18% to 0.15% for our most popular Asset Allocation ETFs.

Now we’re Splitting to serve you Better

It’s important for us to continually evolve and support Canadian investors in reaching their unique financial goals.

With lower fees, and now, a stock split beginning on August 18, you can put more of your money to work in the portfolio that fits you best. Stock splits reduce the price per unit, making it easier to invest smaller amounts, rebalance with precision, and build diversified portfolios over time.

This change was inspired by feedback from our do-it-yourself investors and reflects our ongoing commitment to offering one of the lowest-cost, most accessible all-in-one ETF solutions in Canada.

Consider ‘Zed’ instead with solutions like ZEQT (BMO All Equity ETF), ZGRO (BMO Growth ETF), ZBAL (BMO Balanced ETF) and ZCON (BMO Conservative ETF).

Learn more in our press release here.

Q: What is a stock split in the context of an ETF?

A stock split occurs when an ETF increases the number of its units outstanding by issuing additional units to existing unitholders. In a 3-for-1 split, each unitholder receives two additional units for every unit they already own:  tripling the number of units while reducing the price per unit to one-third of its original value. This makes it easier to invest smaller amounts and manage portfolios with greater precision.

Q: Does a stock split change the value of my investment?

No, a stock split does not change the total dollar value of your investment.
If you owned 10 shares at $90 each before a 3-for-1 split, you would own 30 shares at $30 each after the split.
The total value remains $900.

Q: Why do ETF providers do stock splits?

Stock splits are typically done to:

• Lower the Net Asset Value (NAV) per unit, making the ETF more affordable and accessible to a broader range of investors.
• Improve liquidity by increasing the number of units available for trading.
• Encourage participation from newer or smaller investors who may be deterred by high unit prices.

Q: What are the benefits of a lower NAV for investors?

• Affordability: Lower NAVs make it easier for investors to buy full units without needing large amounts of capital.
• Accessibility: Investors using platforms that don’t support fractional shares can still participate in ETFs with lower NAVs.
• Flexibility: It becomes easier to rebalance portfolios or invest specific dollar amounts.

Q: How does this relate to fractional shares?

While some platforms offer fractional shares, allowing you to buy a portion of a unit, not all do. A stock split effectively lowers the price per unit, making it easier for investors to buy whole units even without fractional share support.

Q: Is there any downside to a stock split?

Not typically. It’s a change that doesn’t affect the ETF’s underlying holdings or performance. However, investors should still monitor the ETF’s fundamentals and strategy.

Unitholders of the BMO ETFs do not need to take any action to effect these transactions and brokerage accounts will be automatically updated to reflect the split(s).

A broker may take several days to reflect these transactions in a unitholder’s account (the “Settlement Period”). However, units of the BMO ETFs may still be traded during the Settlement Period. BMO AM recommends investors contact their broker should they wish to trade post-split units during the Settlement Period.

Further information about BMO ETFs can be found at www.bmoetfs.com.

Source: BMO Global Asset Management, as of June 30, 2025

Michelle Allen is a Senior Associate, Online Distribution at BMO Exchange Traded Funds. Michelle has a passion for empowering DIY investors to feel confident in their investment choices through ETF education. Michelle runs the ETF Market Insights newsletter and the Views From The Desk podcast. Michelle has an honors degree from Wilfrid Laurier University and her PMP designation.

Disclaimer

Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent prospectus.

Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated.

For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.

BMO ETFs are managed and administered by BMO Asset Management Inc., an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate.

“BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.