Canadian Portfolio Manager Blog

BMO Just Made These ETFs More Tax Efficient (ZCON, ZBAL, ZGRO)

BMO has restructured its three asset‑allocation ETFs—ZCON, ZBAL and ZGRO—by replacing the traditional aggregate‑bond component (ZAG) with a discount‑bond strategy (ZDB). The swap reduces taxable coupon income, aiming to boost after‑tax returns for investors holding these funds in non‑registered accounts. The change is highlighted alongside a performance comparison with Vanguard and iShares, and includes an estimated basis‑point gain for each ETF. The move underscores BMO’s effort to enhance tax efficiency without altering the core equity exposure of the funds.