BMO Launches MSCI Latin America Equity ETF on Toronto Stock Exchange
What happened
BMO Asset Management Inc. launched the BMO MSCI Latin America GDP Weighted Index ETF, which began trading on the Toronto Stock Exchange as ZLAT. This ETF seeks to replicate the performance of the MSCI EM Latin America GDP Weighted Index. The index includes large and mid cap stocks from five emerging markets in Latin America, including Brazil, Chile, Colombia, and Mexico.
Why it matters
The launch expands investor options for regional exposure to Latin American equities. The underlying index, provided by MSCI, tracks stocks across several emerging markets in Latin America. This provides a mechanism for capital to access these specific regional markets through the Toronto Stock Exchange.
Who's involved
- Bank of MontrealManager of the BMO ETFs
- Toronto Stock ExchangeStock exchange where the ETF is listed and begins trading
- MSCIProvider of the MSCI EM Latin America GDP Weighted Index
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ChileSpeculative
Chilean equities might see increased foreign capital access and market visibility due to inclusion in the new index.
- ColombiaSpeculative
Colombian equities might see increased foreign capital access and market visibility due to inclusion in the new index.
- PeruSpeculative
Peruvian equities might see increased foreign capital access and market visibility due to inclusion in the new index.
- Mercado pagoSpeculative
Mercado pago might benefit from increased institutional investment validating the regional market size.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.Keep exploring
The entities involved
-
Bank of Montreal
Canadian investment bank
-
Latin America
region of the Americas where Romance languages are primarily spoken
-
Toronto Stock Exchange
stock exchange in Canada
Related events
- BMO manages an ETF listed on the TSX that invests in U.S. large cap equity under Canadian securities legislation.
- TempraMed Technologies Ltd. is expanding its distribution network into Latin American markets, with Argentina being one of the newly added markets.
- The outlook for regional markets in Latin America has been provided, and the cost of capital for these markets has been set.