BMO's ZMPI: A New Approach to International Equity Exposure
BMO's new ZMPI ETF brings an active, rules-based approach to international equity exposure.
Rising market concentration among U.S. equities has been a prevailing theme in recent years, driven by the dominance of ‘Big Tech’, specifically the Magnificent Seven. Against this backdrop, investors are increasingly looking to diversify their equity exposure beyond U.S. equities, with the international equities asset class attracting interest. However, given the vastness of the international equities landscape, some investors are seeking a ‘non-passive’ approach to the asset class, enabling a more enhanced investment experience. Recently, BMO Asset Management launched a new ETF series, BMO Market+ International Equity Fund (Ticker: ZMPI), that may appeal to the aforementioned investor profile.
BMO Market+ ETFs
ZMPI is part of BMO’s Market+ ETF suite, which provides broad equity exposure across Canadian, U.S., and international markets by combining active management with a rule-based investment approach. The overarching goal of the suite is to provide investors with bespoke market exposure by holding a concentrated set of securities, with the potential for stronger risk-adjusted outcomes.
To achieve the suite’s intended goal, the underlying equities in each BMO Market+ ETF are selected using a systematic model of fundamental equity analysis that considers factors such as earnings quality, valuation, price momentum, profitability, management quality, and market sentiment. As illustrated below, this systematic approach to portfolio construction results in a high-conviction product for investors.
Focusing on ZMPI
Despite the volatility that has shaped the year thus far, international equities, as represented by the MSCI EAFE Total Return Index, has exhibited strong performance – particularly when contrasted against U.S. equities (i.e., the MSCI USA Total Return Index).
Though ZMPI is a new offering within the ETF structure, the mandate has existed at BMO for quite some time as a mutual fund, formerly known as the BMO International Equity Fund. As shown in the illustration below, prior to 2024, the fund had a different manager. With the new manager in place as of January 2024, the strategy's performance has been notable, with reported outperformance of 6.94% relative to the MSCI EAFE Index. Furthermore, the strategy has beneficially participated when the market has risen and managed to ‘lose less’ during down-market periods.
Takeaway
For investors seeking international equity exposure, the investment strategy behind the BMO Market+ International Equity Fund (Ticker: ZMPI) has proven effective in recent years, making it worthy of consideration. For investors seeking additional information about the BMO Market+ suite, there is a dedicated website that details all ETF offerings and their role within an investor’s portfolio.
Images used within this article were taken the BMO Market+ Sales Aid and ZMPI – Your International Core Plus More.
This article was written on July 4th, 2026. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
