BMO has one trick no other Big Five bank has pulled off: they wrapped their own ETFs inside mutual fund structures. The result — BMO ETF Portfolio funds — are the cheapest balanced mutual funds at any Canadian bank. Everything else in BMO's lineup is the same overpriced garbage as every other bank.
BMO is Canada's biggest ETF provider by number of funds. Their smart move: wrap those ETFs into mutual fund wrappers so people who prefer mutual funds (automatic contributions, dollar-cost averaging, no trading commissions) can access cheap ETF portfolios.
The BMO ETF Portfolio funds hold a diversified mix of BMO ETFs (ZAG, ZCN, ZSP, ZEA, ZEM) and rebalance automatically. In Series D (discount brokerage), they're among the cheapest balanced mutual funds available at any Canadian bank.
Three risk levels, same structure. All hold BMO ETFs. Series D costs roughly half of Series A.
| Fund | Allocation | MER (Series A) | MER (Series D) | MER (Series F) | Verdict |
|---|---|---|---|---|---|
| BMO Conservative ETF Portfolio | 60% bonds / 40% equity | 1.42% | 0.70% | 0.52% | Series D/F only |
| BMO Balanced ETF Portfolio | 40% bonds / 60% equity | 1.45% | 0.71% | 0.53% | Series D/F only |
| BMO Growth ETF Portfolio | 20% bonds / 80% equity | 1.47% | 0.72% | 0.54% | Series D/F only |
The BMO ETF Portfolio funds in Series D (0.70-0.72% MER) are competitive with RBC InvestEase (0.70% all-in) and cheaper than most robo-advisors. The difference: you pick your risk level (conservative/balanced/growth) and make your own contributions. No advisor, no questions — just a single fund.
If you want automatic contributions with mutual-fund simplicity, these are solid options. But if you can buy ETFs directly, XBAL (0.20%) or ZGRO (0.20%) do the same thing for a third of the price.
BMO also wraps individual ETFs in mutual fund form. Same concept, one asset class per fund.
| Fund | MER (Series A) | MER (Series D) | Underlying ETF | ETF MER | Verdict |
|---|---|---|---|---|---|
| BMO Canadian Equity ETF Fund | 1.36% | 0.64% | ZCN | 0.06% | Just buy ZCN |
| BMO U.S. Equity ETF Fund | 1.39% | 0.65% | ZSP | 0.09% | Just buy ZSP |
| BMO International Equity ETF Fund | 1.51% | 0.76% | ZEA | 0.22% | Just buy ZEA |
| BMO Aggregate Bond Index ETF Fund | 1.12% | 0.42% | ZAG | 0.09% | Just buy ZAG |
The MER gap is glaring. BMO Canadian Equity ETF Fund charges 0.64% MER in Series D. The ETF it holds — ZCN — charges 0.06%.
You're paying 10x more for the mutual fund wrapper. The only reason to use these is if you absolutely need automatic monthly contributions in a mutual fund format. Otherwise, buy the ETFs directly through BMO InvestorLine or another brokerage.
The old-school actively managed BMO funds. High MERs, mediocre track records, and a cheaper BMO ETF alternative for each one.
| Fund | MER (Series A) | 10-Year Return | Annual Fee on $100K | Verdict |
|---|---|---|---|---|
| BMO SelectTrust Balanced Portfolio | 2.08% | 4.2% | $2,080 | Use ETF Portfolio |
| BMO SelectTrust Growth Portfolio | 2.14% | 5.8% | $2,140 | Use ETF Portfolio |
| BMO Dividend Fund | 1.85% | 6.5% | $1,850 | Buy ZDV (0.39%) |
| BMO Monthly Income Fund | 1.49% | 5.1% | $1,490 | Overpriced |
| BMO Global Equity Fund | 2.38% | 8.4% | $2,380 | Buy ZSP+ZEA |
| BMO Canadian Equity Fund | 2.09% | 5.9% | $2,090 | Buy ZCN (0.06%) |
BMO SelectTrust Balanced returned 4.2% annualized over 10 years while charging 2.08% MER. That means roughly half of your gross returns went to BMO. The BMO Balanced ETF Portfolio (Series D) tracks a similar allocation at 0.71% MER.
Same bank, similar portfolio, a third of the cost. There is zero reason to own SelectTrust in 2026.
BMO SmartFolio is their robo-advisor, charging 0.40% management fee on top of ETF MERs (~0.20%), totaling about 0.60% all-in. It builds you a portfolio of BMO ETFs, rebalances automatically, and handles everything.
SmartFolio is cheaper than BMO's ETF Portfolio mutual funds in Series A (1.45%), roughly the same as Series D (0.71%), and more expensive than just buying ZBAL yourself at 0.20% MER. It's a good option if you want hands-off investing but don't want to set up a brokerage account.
But here's the thing: Wealthsimple's robo-advisor charges similar fees with a better app and more features. BMO SmartFolio is fine if you're a BMO loyalist. Otherwise, shop around.
BMO's strongest products aren't mutual funds at all — they're all-in-one ETFs. ZCON (conservative), ZBAL (balanced), and ZGRO (growth) all charge 0.20% MER. That's the lowest all-in-one ETF pricing in Canada, tied with Vanguard.
| BMO ETF | MER | BMO MF Equivalent (Series D) | MF MER | Annual Savings on $100K |
|---|---|---|---|---|
| ZCON | 0.20% | BMO Conservative ETF Portfolio | 0.70% | $500 |
| ZBAL | 0.20% | BMO Balanced ETF Portfolio | 0.71% | $510 |
| ZGRO | 0.20% | BMO Growth ETF Portfolio | 0.72% | $520 |
If you have a BMO InvestorLine account, you can buy these ETFs and set up a Pre-Authorized Cash Contribution (PACC) that automatically deposits cash into your account monthly. Then you manually buy the ETF every month or few months. Not as seamless as mutual fund auto-purchases, but $500/year savings on $100K is worth two minutes of effort per month.
1. Switch to BMO ETF Portfolio funds (Series D). Open a BMO InvestorLine account, switch from SelectTrust or other active funds to the ETF Portfolio funds in Series D. Cuts your fees by roughly 65%.
2. Buy BMO all-in-one ETFs directly. Through BMO InvestorLine, buy ZBAL or ZGRO at 0.20% MER.
Same BMO ETFs as the mutual fund, 70% cheaper. You lose automatic contributions but gain $500+/year on a $100K portfolio.
3. Transfer out entirely. Move to Questrade or Wealthsimple Trade.
BMO charges $125 per registered account to transfer. Both Questrade and Wealthsimple reimburse transfer fees for qualifying accounts.
BMO's unique advantage: Because BMO is both a bank and Canada's top ETF provider, their ETF Portfolio mutual funds give you a genuine low-cost middle ground between "expensive advisor funds" and "do-it-yourself ETFs." No other Big Five bank has this. If you want the simplicity of mutual funds with closer-to-ETF pricing, BMO's ETF Portfolio funds in Series D or F are a reasonable choice. Read about fund series to understand the difference.
ETF Portfolio funds in Series D are solid. Everything else is overpriced. Or just buy ZBAL/ZGRO directly.
Calculate Your Fee Savings All Low-Fee FundsNothing on this site is financial advice. Fund MERs and returns can change — verify current data on BMO's website or in the Fund Facts document before investing.
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