BMO Files for Canada's First U.S. Single-Stock Autocallable ETFs

BMO Asset Management has filed to launch three autocallable income ETFs linked to NVIDIA (NVIA), Palantir (PLTA), and Tesla (TESA), potentially introducing Canada's first U.S. single-stock autocallable ETFs. The funds aim to generate monthly income by replicating the payoff structures of autocallable notes through derivatives rather than direct stock ownership. Coupon payments depend on the underlying shares remaining above specified thresholds, while investors forgo dividends and full upside participation. Each ETF has an expected maturity of approximately 3.5 years but may terminate earlier if autocall conditions are triggered. The strategies offer conditional downside protection, although investors could face substantial principal losses if shares fall below protection thresholds at maturity. All three ETFs will charge a 0.40% management fee.