BMO Tactical Dividend ETF Fund(the “Fund”)

BMO Tactical Dividend ETF Fund (the "Fund")

For the 12-month period ended September 30, 2021 (the "Period") Manager: BMO Investments Inc. (the "Manager" or "BMOII")

Portfolio manager: BMO Asset Management Inc., Toronto, Ontario (the "portfolio manager") Sub-advisor: Quintessence Wealth, Toronto, Ontario

2021 Annual Management Report of Fund Performance

This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the Fund. If the annual financial statements of the Fund do not accompany the mailing of this report, you may obtain a copy of the annual financial statements at your request, and at no cost, by calling 1-800-665-7700 and 1-800-668-7327, by writing to us at BMO Investments Inc., First Canadian Place, 100 King Street West, 43rd Floor, Toronto, Ontario, M5X 1A1 or by visiting our website at mutualfunds and gam/ca or SEDAR at . You may also contact us using one of these methods to request a copy of the Fund's interim financial report, proxy voting policies and procedures, proxy voting disclosure record and/or quarterly portfolio disclosure.

MANAGEMENT DISCUSSION OF FUND PERFORMANCE

Investment Objective and Strategies The Fund's objective is to provide long-term capital growth and current income by investing primarily in a diversified portfolio of exchange traded funds that invest in income producing securities.

The sub-advisor may invest up to 100% of the Fund's assets in securities of exchange traded funds and/or other mutual funds, including funds that are managed by the Manager or one of their affiliates or associates and non-affiliated funds; however the sub-advisor invests primarily in exchange traded funds. The sub-advisor considers asset class and sector investments based on fundamentals, economics and market outlook, and uses of technical indicators when implementing portfolio rebalances.

Risk The risks associated with an investment in the Fund remain as disclosed in the Fund's most recent simplified prospectus or any amendments thereto and fund facts or ETF facts. During the Period, there were no changes to the Fund that materially affected the overall risk level associated with an investment in the Fund. The Manager reviewed the Fund using the standardized investment risk classification methodology prescribed by National Instrument 81-102 Investment Funds and determined on May 26, 2021 that the risk rating of the Fund had not changed. The Manager reviews the Fund's investment risk level and reference index, if any, at least annually.

Results of Operations During the Period, the Fund's total net asset value changed from approximately $578 million to approximately $339 million. Series A units of the Fund returned 0.90%. Please see the Past Performance section for information on the performance returns of the Fund's other series.

During the Period, countries around the world made significant progress in vaccinating their populations. Some emerging markets ("EM") countries lagged, and the U.S. dollar remained relatively strong versus EM currencies. Inflation has proved to be less transitory than initially believed, forcing central banks to reduce fiscal and monetary accommodation. U.S. earnings remained strong, supporting global equities. Global equities, as measured by the MSCI World Index returned 23.1% (in Canadian dollars) over the Period. Canadian equities, as measured by the S&P/TSX Composite Total Return Index, returned 28.0% over the Period, led by the Energy and Financials sectors.

In early 2021, the Fund shifted to more of a growth bias. As a result, the Fund underperformed for the first half of the Period but outperformed in the second half. The degree of net exposure to volatile stocks was the most notable factor, but the Fund was aggressively hedged in the first half of the Period. The Fund shifted to an overweight exposure to EM equities, which lagged the U.S. market but still contributed to performance in the first half of the Period. The Fund's holdings in BMO International Dividend ETF, BMO US Dividend ETF and Dividend Growth Split Corp. Class A shares were the top performers since being added to the Fund.

BMO Tactical Dividend ETF Fund

The Fund's overweight exposure to EM equities detracted

from performance in the second half of the Period.

Significant exposure to global currencies also detracted

from performance as the Canadian dollar was among the

strongest performers in the world. The main individual

detractor from performance was BMO Equal Weight Global

Gold Index ETF, owing to its gold exposure over the Period.

BMO Premium Yield ETF, which had a defensive option

yield focus with a low growth profile, also detracted.

New positions in the Fund included BMO International

Dividend ETF, BMO US Dividend ETF, Dividend Growth

Split Corp. Class A shares and BMO Covered Call US

Banks ETF.

Increased positions in the Fund included SPDR S&P Emerging

Markets Dividend ETF, iShares Emerging Markets Dividend

ETF, WisdomTree Emerging Markets High Dividend Fund

and BMO Europe High Dividend Covered Call ETF.

Decreased positions in the Fund included BMO Equal

Weight Global Gold Index ETF and BMO Covered

Call Utilities ETF.

The Fund exited positions in Alerian MLP ETF,

BMO Covered Call US Banks ETF and BMO Canadian High

Dividend Covered Call ETF.

For information on the Fund's performance and composition, please refer to the Past Performance section and Summary of Investment Portfolio section of this report.

Recent Developments The sub-advisor expects the reduction in quantitative easing from the U.S. Federal Reserve Board and other central banks to increase the equity risk premium. Growth stocks should significantly underperform value stocks. Currently, the Fund holds an overweight position in value stocks. The sub-advisor expects global growth to be much slower than expected given the significant reduction in pandemic-related support. The sub-advisor also expects COVID-19 will become endemic or at least persist for several more years, and this may weigh on growth stocks as support pulls back. Supply chains could also be slow to recover. The sub-advisor believes that inflation pressure will last longer than initially expected, and competition for jobs will see wage surprises on the upside. A backdrop of stagflation (high inflation combined with high unemployment and slowing economic growth) will likely present margin pressures that could lead to increased asset price volatility.

RELATED PARTY TRANSACTIONS

BMO Investments Inc., an indirect, wholly-owned subsidiary of Bank of Montreal ("BMO"), is the Manager of the Fund. The Manager is paid a management fee by the Fund as compensation for its services, which is described in the "Management Fees" section later in this document.

From time to time, the Manager may, on behalf of the Fund, enter into transactions or arrangements with or involving other members of BMO Financial Group, or certain other persons or companies that are related or connected to the Manager (each a "Related Party"). The purpose of this section is to provide a brief description of any transaction involving the Fund and a Related Party.

Portfolio Manager The Fund's portfolio manager is BMO Asset Management Inc. ("BMOAM"), an affiliate of the Manager. BMOAM provides portfolio management services to the Fund. BMOAM receives from the Manager a management fee based on assets under management, calculated daily and payable monthly.

Administration Fee and Operating Expenses The Fund pays a fixed administration fee to the Manager in respect of each series other than Series I. The Manager in return pays the operating expenses of these series of the Fund, other than certain specified expenses that are paid directly by the Fund ("Fund Expenses"). Fund Expenses, include expenses incurred in respect of preparing and distributing fund facts, interest or other borrowing expenses, all reasonable costs and expenses incurred in relation to compliance with National Instrument 81-107 Independent Review Committee for Investment Funds, including compensation and expenses payable to the Fund's independent review committee ("IRC") members, taxes to which the Fund is or might be subject, and costs associated with compliance with any new governmental or regulatory requirement introduced after December 1, 2007. Fund Expenses are allocated proportionately among the relevant series. If the Fund Expenses are specific to a series, the Fund Expenses are allocated to that series. The fixed administration fee is calculated as a fixed annual percentage of the net asset value of each relevant series of the Fund. Separate fees and expenses are negotiated and paid directly by each Series I investor. For the ETF Series, the Manager is responsible for payment of administration expenses and other operating expenses of the Fund which are allocated to the ETF Series. Further details about the fixed administration fee and/or Fund Expenses can be found in the Fund's most recent simplified prospectus at mutualfunds and gam/ca or .

BMO Tactical Dividend ETF Fund

Buying and Selling Securities During the Period, the Fund relied on standing instructions provided by the IRC for any of the following related party transactions that may have occurred in the Fund:

(a) investments in securities issued by BMO, an affiliate of the Manager, or any other issuer related to the Manager;

(b) investments in a class of non-government debt securities and/or equity securities of an issuer during the period of distribution of those securities to the public and/or the 60-day period following the distribution period where BMO Nesbitt Burns Inc., an affiliate of the Manager, or any other affiliate of the Manager acted as an underwriter in the distribution;

(c) trades in debt securities in the secondary market with BMO Nesbitt Burns Inc., an affiliate of the Manager, that is trading with the Fund as principal; and

(d) inter-fund trades

(each, a "Related Party Transaction").

In accordance with the IRC's standing instructions, in making a decision to cause the Fund to enter into a Related Party Transaction, the Manager and the portfolio manager of the Fund are required to comply with the Manager's written policies and procedures governing the Related Party Transaction and report periodically to the IRC, describing each instance that the Manager relied on the standing instructions and its compliance or non-compliance with the governing policies and procedures. The governing policies and procedures are designed to ensure that each Related Party Transaction (i) is made free from any influence of BMO, BMO Nesbitt Burns Inc. or an associate or affiliate of BMO and/or BMO Nesbitt Burns Inc., and without taking into account any considerations relevant to BMO, BMO Nesbitt Burns Inc. or an associate or affiliate of BMO and/or BMO Nesbitt Burns Inc.; (ii) represents the business judgment of the Manager, uninfluenced by considerations other than the best interests of the Fund; and (iii) achieves a fair and reasonable result for the Fund.

Brokerage Commissions The Fund pays standard brokerage commissions at market rates to BMO Nesbitt Burns Inc., an affiliate of the Manager, for executing a portion of its trades. The brokerage commissions charged to the Fund (excluding exchange and other fees) during the periods indicated, were as follows:

Period ended Sep. 30, 2021

$000

Period ended Sep. 30, 2020

$000

Total brokerage commissions

510

237

Brokerage commissions paid to BMO Nesbitt Burns Inc.

241

33

Distribution Services The Manager markets and distributes the Fund through BMO branches and/or (depending on the series) through registered dealers and brokers, including BMO InvestorLine Inc. and BMO Nesbitt Burns Inc., both affiliates of the Manager. The Manager pays to these affiliates a service fee called a "trailing commission" based on the average daily value of the units and/or shares that are held in investor accounts. This service fee is paid monthly or quarterly and varies by purchase option and by series.

FINANCIAL HIGHLIGHTS

The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the periods indicated.

The Fund's Net Assets per Unit (1)

Series A Units

2021

Net assets, beginning of period $

9.97

Increase (decrease)

from operations:

Total revenue

$

0.51

Total expenses (2)

$

-0.13

Realized gains (losses)

for the period

$

-1.10

Unrealized gains (losses)

for the period

$

0.76

Total increase (decrease)

from operations (3)

$

0.04

Distributions:

From net investment income

(excluding dividends)

$

--

From dividends

$

--

From capital gains

$

--

Return of capital

$

0.24

Total Annual Distributions (4) $

0.24

Net assets, end of period

$

9.82

Periods ended Sep. 30 2020 2019 2018

11.24 11.09 11.31

2017 10.58

0.37 0.47 0.49 0.57 -0.16 -0.18 -0.17 -0.16 -0.68 -0.24 0.25 0.81 -0.41 0.30 -0.14 -0.22 -0.88 0.35 0.43 1.00

-- 0.02

--

--

0.23 0.11 0.28 0.31

0.09 0.01 0.32

--

0.06 0.04 0.04 0.03

0.38 0.18 0.64 0.34

9.97 11.24 11.09 11.31

BMO Tactical Dividend ETF Fund

Advisor Series Units

Net assets, beginning of period $

Increase (decrease)

from operations:

Total revenue

$

Total expenses (2)

$

Realized gains (losses)

for the period

$

Unrealized gains (losses)

for the period

$

Total increase (decrease)

from operations (3)

$

Distributions:

From net investment income

(excluding dividends)

$

From dividends

$

From capital gains

$

Return of capital

$

Total Annual Distributions (4) $

Net assets, end of period

$

ETF Series Units

Net assets, beginning of period $

Increase (decrease)

from operations:

Total revenue

$

Total expenses (2)

$

Realized gains (losses)

for the period

$

Unrealized gains (losses)

for the period

$

Total increase (decrease)

from operations (3)

$

Distributions:

From net investment income

(excluding dividends)

$

From dividends

$

From capital gains

$

Return of capital

$

Total Annual Distributions (4) $

Net assets, end of period

$

Periods ended Sep. 30 2021 2020 2019 2018 2017

9.95 11.20 11.06 11.29 10.61

0.51 0.37 0.47 0.48 0.57 -0.13 -0.16 -0.18 -0.17 -0.16 -1.13 -0.67 -0.23 0.24 0.81 0.78 -0.49 0.29 -0.14 -0.21 0.03 -0.95 0.35 0.41 1.01

--

-- 0.02

--

--

-- 0.23 0.12 0.28 0.35

-- 0.08 0.01 0.34

--

0.24 0.06 0.04 0.04 0.03

0.24 0.37 0.19 0.66 0.38

9.80 9.95 11.20 11.06 11.29

2021 28.36

Periods ended Sep. 30

2020

2019)(6)

31.70 30.00)*)

1.42 1.05 1.05 -0.06 -0.13 -0.13 -2.77 -1.95 0.38 1.71 -1.62 0.15 0.30 -2.65 1.45

-- -- -- 1.17 1.17 27.73

-- 0.79 0.13 0.34 1.26 28.36

-- 0.75

-- -- 0.75 31.70

Series T6 Units

Net assets, beginning of period $

Increase (decrease)

from operations:

Total revenue

$

Total expenses (2)

$

Realized gains (losses)

for the period

$

Unrealized gains (losses)

for the period

$

Total increase (decrease)

from operations (3)

$

Distributions:

From net investment income

(excluding dividends)

$

From dividends

$

From capital gains

$

Return of capital

$

Total Annual Distributions (4) $

Net assets, end of period

$

Series F Units

Net assets, beginning of period $

Increase (decrease)

from operations:

Total revenue

$

Total expenses (2)

$

Realized gains (losses)

for the period

$

Unrealized gains (losses)

for the period

$

Total increase (decrease)

from operations (3)

$

Distributions:

From net investment income

(excluding dividends)

$

From dividends

$

From capital gains

$

Return of capital

$

Total Annual Distributions (4) $

Net assets, end of period

$

Periods ended Sep. 30 2021 2020 2019 2018 2017

8.00 9.36 9.64 10.02 9.65

0.40 0.31 0.40 0.43 0.52 -0.10 -0.13 -0.15 -0.15 -0.14 -0.96 -0.52 -0.20 0.23 0.71 0.67 -0.39 0.20 -0.17 -0.36 0.01 -0.73 0.25 0.34 0.73

--

--

--

-- 0.04

-- 0.10 0.07 0.32 0.42

-- 0.08 0.01 0.16

--

0.49 0.45 0.47 0.27 0.13

0.49 0.63 0.55 0.75 0.59

7.58 8.00 9.36 9.64 10.02

2021 10.17

Periods ended Sep. 30 2020 2019 2018

11.37 11.24 11.41

2017 10.72

0.53 0.39 0.48 0.49 0.58 -0.02 -0.05 -0.06 -0.05 -0.04 -1.38 -0.63 -0.20 0.26 0.82 0.95 -0.73 0.27 -0.14 -0.33 0.08 -1.02 0.49 0.56 1.03

-- -- -- 0.24 0.24 10.13

-- 0.31 0.07 0.04 0.42 10.17

-- 0.27 0.01 0.04 0.32 11.37

0.06 0.35 0.27 0.04 0.72 11.24

0.07 0.41

-- 0.03 0.51 11.41

BMO Tactical Dividend ETF Fund

Series F6 Units

Net assets, beginning of period $

Increase (decrease)

from operations:

Total revenue

$

Total expenses (2)

$

Realized gains (losses)

for the period

$

Unrealized gains (losses)

for the period

$

Total increase (decrease)

from operations (3)

$

Distributions:

From net investment income

(excluding dividends)

$

From dividends

$

From capital gains

$

Return of capital

$

Total Annual Distributions (4) $

Net assets, end of period

$

Series D Units

Net assets, beginning of period $

Increase (decrease)

from operations:

Total revenue

$

Total expenses (2)

$

Realized gains (losses)

for the period

$

Unrealized gains (losses)

for the period

$

Total increase (decrease)

from operations (3)

$

Distributions:

From net investment income

(excluding dividends)

$

From dividends

$

From capital gains

$

Return of capital

$

Total Annual Distributions (4) $

Net assets, end of period

$

Periods ended Sep. 30 2021 2020 2019 2018 2017

8.53 9.84 10.02 10.26 9.78

0.43 0.32 0.42 0.44 0.55 -0.02 -0.04 -0.05 -0.04 -0.04 -0.98 -0.57 -0.18 0.24 0.77 0.69 -0.36 0.26 -0.14 -0.42 0.12 -0.65 0.45 0.50 0.86

--

--

-- 0.06 0.14

-- 0.19 0.23 0.34 0.39

-- 0.07 0.01 0.12

--

0.52 0.39 0.34 0.21 0.07

0.52 0.65 0.58 0.73 0.60

8.17 8.53 9.84 10.02 10.26

Periods ended Sep. 30 2021 2020 2019 2018 2017

9.42 10.59 10.41 10.65 10.00

0.48 0.37 0.43 0.45 0.54 -0.06 -0.08 -0.09 -0.08 -0.08 -0.98 -0.62 -0.34 0.23 0.77 0.68 -0.44 0.28 -0.14 -0.19 0.12 -0.77 0.28 0.46 1.04

--

--

-- 0.01 0.03

-- 0.27 0.16 0.34 0.37

-- 0.08 0.01 0.33

--

0.24 0.06 0.04 0.04 0.03

0.24 0.41 0.21 0.72 0.43

9.33 9.42 10.59 10.41 10.65

Series G Units

Net assets, beginning of period $

Increase (decrease)

from operations:

Total revenue

$

Total expenses (2)

$

Realized gains (losses)

for the period

$

Unrealized gains (losses)

for the period

$

Total increase (decrease)

from operations (3)

$

Distributions:

From net investment income

(excluding dividends)

$

From dividends

$

From capital gains

$

Return of capital

$

Total Annual Distributions (4) $

Net assets, end of period

$

Series I Units

Net assets, beginning of period $

Increase (decrease)

from operations:

Total revenue

$

Total expenses (2)

$

Realized gains (losses)

for the period

$

Unrealized gains (losses)

for the period

$

Total increase (decrease)

from operations (3)

$

Distributions:

From net investment income

(excluding dividends)

$

From dividends

$

From capital gains

$

Return of capital

$

Total Annual Distributions (4) $

Net assets, end of period

$

Periods ended Sep. 30 2021 2020 2019 2018)(5)

9.29 10.35 10.30 10.00)*

0.47 0.34 0.45 0.29 -0.07 -0.09 -0.11 -0.06 -0.92 -0.68 -0.05 0.26 0.65 -0.35 0.17 -0.08 0.13 -0.78 0.46 0.41

--

--

--

--

-- 0.23 0.27 0.24

-- 0.05 0.01

--

0.24 0.02 0.04

--

0.24 0.30 0.32 0.24

9.18 9.29 10.35 10.30

Periods ended Sep. 30 2021 2020 2019 2018 2017

9.48 10.63 10.48 10.78 10.12

0.46 0.35 0.45 0.05 0.03 0.03 -1.02 -0.72 -0.21 0.77 -0.33 0.24 0.26 -0.67 0.51

0.46 0.54 0.03 -0.00 0.36 0.77 0.08 -0.15 0.93 1.16

-- 0.04

-- 0.09

--

-- 0.33 0.30 0.33 0.46

-- 0.08 0.01 0.41

--

0.24 0.05 0.04 0.04 0.05

0.24 0.50 0.35 0.87 0.51

9.50 9.48 10.63 10.48 10.78

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