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BMO
About 93% of the 5.2% yield is recurring income; the rest is capital gains or return of capital. Too new to show a capital trend.
Payout over time
Fund health
For bond funds, the useful comparison is the recent cash payout beside the portfolio's yield to maturity, duration, credit quality, and sector mix. These are portfolio facts, not a forecast of future distributions.
Portfolio yield vs payout
Portfolio data as of Jul 2026.
The trailing payout was 5.2%. The portfolio yield to maturity was 4.9% at the holdings vintage, so the recent payout rate was above the portfolio yield shown here.
YTM is modeled from the bond portfolio. Actual distributions can differ as holdings, fees, realized gains or losses, and tax character change.
In the latest tax year (2025) on file, return of capital was 6.8% of the cash distribution.
Interest-rate sensitivity
0.1 years effective duration
A 1 percentage point rise in interest rates would move the unit price about -0.1%; a 1 point fall, about +0.1%.
Evidence: worst since-inception drawdown was -0.4%.
Credit quality
How it's taxed
The CRA taxes each distribution dollar by its character. These shares are measured against the full taxable distribution, including any portion the fund reinvested as units rather than paying in cash.
| Character | % of taxable | $ / unit |
|---|---|---|
| Foreign income | 93% | $0.8798 |
| Return of capital | 7% | $0.0639 |
Foreign withholding tax already taken inside the fund: $0.0058 per unit. In a non-registered account, foreign tax reported on the T3 may be claimable as a foreign tax credit, subject to T2209 limits. TFSA and RRSP accounts do not claim that T3 credit.
Return of capital is not tax-free. It lowers your adjusted cost base, so the deferred tax can increase a later capital gain or reduce a later capital loss when you sell.
Based on BMO's 2025 T3 / tax-factor filing. Character can vary year to year. This is not tax advice; consult a tax professional about your situation.
What you keep, in your account
Each figure below starts from the headline yield of 5.2% and shows an estimate of what you keep after tax. Where you hold the fund changes the answer: a TFSA shelters Canadian tax and can still lose foreign withholding tax when the fund has foreign withholding, a non-registered account taxes each character at its own rate, and an RRSP defers tax until you withdraw.
These figures are estimates at the top ON marginal tax rate, not your personal rate. The return-of-capital portion is not taxed now: it lowers your cost base, so more of your eventual sale is taxed as a capital gain instead.
Illustrative, not tax advice.
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Next steps
Prices as of 2026-07-27. Distributions as of 2026-07-28. Tax character year 2025.
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51% investment grade (BBB and above), the rest below it. A mixed credit profile: investment-grade bonds are the majority, with a meaningful below-investment-grade sleeve.
Portfolio data as of Jul 2026.
Own payout record
Cash distributed per unit, by calendar year, from the fund's own distribution history (up to the last 6 years). "Reduced" marks a year where the cash paid per unit fell more than 5% versus the prior year.