BMO InvestorLine: ETFs Can Help Diversify a Portfolio

BMO InvestorLine: ETFs Can Help Diversify a Portfolio 
TORONTO, ONTARIO -- (Marketwire) -- 10/05/12 -- BMO InvestorLine
encourages investors to consider including Exchange Traded Funds
(ETFs) in their portfolios as part of a well-balanced investing
"Investors looking for investment options that offer diversification
and broad exposure to a variety of markets - at a low cost - should
consider incorporating ETFs into their portfolio," said Cesar
Rainusso, Vice President, BMO InvestorLine. "While ETFs open doors to
a variety of markets and can help investors hedge against risk, it's
important to evaluate the areas where you are currently invested in
order to avoid over-diversification."  
While ETFs are relatively new to the Canadian market compared to more
traditional investments such as bonds and mutual funds, ETFs in
Canada have grown substantially since being introduced, according to
a recent report by BMO Global Asset Management. The report, BMO
Canadian ETF Outlook Update 2012, notes the industry currently stands
at $50 billion CAD in assets under management (AUM); in 2012 the
industry as a whole experienced double digit growth (15.9 per cent).  
Mr. Rainusso noted that while the industry has made significant gains
in Canada, many investors remain unfamiliar with how ETFs work. ETFs
consist of a 'basket' of securities that mirror a particular market
index. In addition to stocks and bonds, ETFs provide investment
opportunities in market sectors that individual investors often
cannot access on their own.  
BMO InvestorLine offers tips to help investors incorporate ETFs into
their portfolio: 
Differences Count: ETFs trade on an exchange and can be bought or
sold whenever markets are open. ETF investors have access to many of
the same strategies available for individual stocks, such as placing
market, limit, and/or stop-loss orders or short selling. 
Invest for Less: ETFs generally have no minimum investment amount.
Investors who are just starting out can begin with a small investment
and increase the amount in the future.  
Check the Track Record: As actively-managed ETFs are fairly new, they
have a limited track record. Check the fund manager's background and
past performance to gain insight.  
Read the Fine Print: Consider the fund's investment objectives,
charges, expenses and risks carefully before investing. Take some
time to read the fund's prospectus, which can be obtained from a
financial representative and contains this and other information
about the fund.  
For more information on online investing, please visit 
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About BMO InvestorLine 
BMO InvestorLine is an online investing service that provides clients
with two ways to invest online. Clients can choose from BMO
InvestorLine's top ranked Self-Directed service that provides tools
to help investors make independent decisions on how to invest. BMO
InvestorLine's other service, adviceDirect(TM) provides investors
with online advice and investment recommendations for their
portfolios. Clients have access to trading, quotes and account
information 24 hours a day through a website or Automated Telephone
Trading. BMO InvestorLine also provides users with third party
research, along with leading edge tools that are informative and easy
to use. As an all-in-one investment source, it is a constantly
evolving, cost-efficient platform that is fully compatible with
BMO InvestorLine Inc. and BMO Ligne D'action Inc. provide this
commentary to clients for informational purposes only. The
information contained herein is based on sources that we believe to
be reliable, but is not guaranteed by us, may be incomplete or may
change without notice. The comments included in this document are
general in nature, and professional advice regarding an individual's
particular position should be obtained.  
An adviceDirect account is a non-discretionary fee based account
which offers investment recommendations. adviceDirect does not
provide portfolio management by a portfolio manager. The client makes
their own investment decisions and manages their own investment
portfolio. adviceDirect does not offer discretionary, managed
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BMO InvestorLine Inc. is a wholly owned subsidiary of Bank of
Montreal Holdings Inc. Member - Canadian Investor Protection Fund and
Media Contacts:
Rachael McKay, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver
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