BMO Launches its First Autocallable ETF Linked to Individual U.S. Stocks

BMO has launched the BMO Strategic Autocallable Income US Large Cap ETF, its first dedicated autocallable ETF, on the Toronto Stock Exchange. Available in CAD (ZACU), currency-hedged (ZACU.F) and USD (ZACU.U) units, the fund seeks regular income through an actively managed portfolio of single-stock autocallable derivatives linked to large-cap U.S. companies. It aims to replicate the outcomes of a diversified portfolio of autocallable structured notes, net of fees and expenses. Structured as an alternative mutual fund, it can use borrowing, short selling and leverage beyond conventional mutual fund limits. These tools may amplify losses in certain market conditions, while income distributions are not guaranteed.