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Fri, Oct

ETF Canada
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HXT celebrates its seventh anniversary and continues as the lowest-cost ETF in Canada....

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Horizons ETFs Management (Canada) Inc. announces that it will be extending the four basis point (0.04%) rebate on the annual management fee of the Horizons S&P/TSX 60™ Index ETF (“HXT”) so that the effective annual management fee on HXT continues at three basis points (0.03%), plus applicable sales taxes. With the extension of the rebate, HXT remains the lowest-cost Canadian equity ETF in the world. This rebate will remain in effect until at least September 30, 2018.

“When HXT launched seven years ago as the lowest-cost ETF in the country, it set the trend for ultra-low management fees for ETFs,” said Steve Hawkins, President and Co-CEO of Horizons ETFs.

HXT is Horizons ETFs’ oldest Total Return Index (“TRI”) ETF and largest in terms of assets under management (“AUM”). The investment structure of HXT involves an agreement with multiple Canadian bank counterparties, which requires them to deliver to HXT the total return of the S&P/TSX 60™ Index.

Since the TRI structure does not require the purchasing of the underlying securities in the index, there are fewer portfolio management costs than a physically replicated ETF. Also, TRI ETFs provide the total return of the index and, as a result, no physical dividend or income distributions are expected to be paid by these ETFs. This can provide greater tax efficiency for investors that hold the ETF in non-registered investment accounts.

“Arguably more impactful than the fee savings that HXT offers, are its tax-deferral benefits,” said Mr. Hawkins. “With the elimination of tax-free switching for corporate class mutual funds last year, we’ve seen an even greater pickup in assets for HXT this year, as well as our total return index ETFs overall.”

The TRI ETFs make up one of Horizons ETFs’ largest product segments, with AUM increasing 29% year-to-date, and comprising approximately $3 billion of Horizons ETFs’ overall $8.2 billion of total AUM (as at August 31, 2017).

Horizons ETFs offers 11 TRI ETFs, including three fixed income products: the Horizons CDN Select Universe Bond ETF (“HBB”), the Horizons US 7-10 Year Treasury Bond ETF (“HTB”) and the Horizons US 7-10 Year Bond CAD Hedged ETF (“HTH”).

Ticker

ETF Name

Annual Management
Fee (%) *

HXT

Horizons S&P/TSX 60™ Index ETF

0.03**

HXS

Horizons S&P 500® Index ETF

0.10

HXE

Horizons S&P/TSX Capped Energy Index ETF

0.25

HXF

Horizons S&P/TSX Capped Financials Index ETF

0.25

HBB

Horizons Cdn Select Universe Bond ETF

0.09

HTB

Horizons US 7-10 Year Treasury Bond ETF

0.15

HTH

Horizons US 7-10 Year Treasury Bond CAD Hedged ETF

0.15

HXH

Horizons CDN High Dividend Index ETF

0.10

HXQ

Horizons NASDAQ-100® Index ETF

0.25

HSH

Horizons S&P 500 CAD Hedged Index ETF

0.10

HXX

Horizons EURO STOXX 50® Index ETF

0.17

 

*Plus applicable sales taxes.
**Annual management fee rebated by 4bps (0.04%) to an effective management fee of 3bps, or 0.03%.

 

Source: ETFWorld.com

WMCR
Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)