Description

The BMO US Preferred Share Hedged to CAD Index ETF (ZHP.TO) is structured to replicate the performance of the Solactive US Preferred Share Select Hedged to CAD Index (NTR), after accounting for its operating expenses. To achieve this, the ETF directly invests in and maintains holdings of the exact securities that compose the index, matching their proportional weightings. Furthermore, its exposure to the U.S. dollar is systematically hedged back to Canadian dollars to mitigate currency fluctuations. Operating as a 'fund of funds,' ZHP's management fees are reduced by any fees already incurred within its underlying investments.