BMO Files ETF Targeting U.S. High Yield Credit Stress

BMO Global Asset Management has filed for the BMO Credit Stress Opportunities ETF (ZCDX/ZCDX.U), which will seek to profit when credit conditions in the U.S. high yield market deteriorate. The ETF plans to gain inverse exposure to the credit risk of a broad portfolio of U.S. high yield corporate issuers by buying protection through a high yield credit default swap index while minimizing interest rate risk. The proposed fund carries a 0.45% management fee and offers investors a potential hedge against widening credit spreads.