* BMO ETF assets up 35 pct in past 3 months to C$2.7 bln
* Royal Bank of Canada, others, to join ETF fray
TORONTO, July 13 The value of assets managed by
Bank of Montreal's (BMO.TO) exchange traded fund business has
risen 35 percent in the past three months to C$2.7 billion
($2.8 billion), Canada's No. 4 bank said on Wednesday.
BMO launched its first ETFs in June 2009 through its asset
management unit and now has a stable of 40 funds covering
various asset classes, sectors, and regions.
ETFs are investment vehicles that own an array of stocks or
bonds, similar to mutual funds, but which are traded on public
Royal Bank of Canada (RY.TO), the country's largest lender,
said last week it plans to launch a suite of ETFs.
It joins a growing list of firms entering or preparing to
enter Canada's nascent C$40 billion ETF market.
Last month, First Asset Investment Management Inc launched
its XTF Capital eXchange Traded Funds in Canada, and Invesco
Trimark launched PowerShares ETFs.
Vanguard Group, one of the biggest mutual fund and ETF
managers in the United States, also said it plans to set up
shop in Canada.
They will join BlackRock's (BLK.N) Canadian unit, which
offers iShares ETFs, Claymore Investments, and Jovian Capital
Corp, which offers ETFs through Horizons ETF Inc.
(Reporting by John McCrank; editing by Peter Galloway)