Horizons Exchange Traded Funds Inc. (“Horizons ETFs”) and its
affiliate Horizons ETFs Management (Canada) Inc. are pleased to announce that effective immediately, .....
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they are offering a two basis point (or 0.02%) rebate (the “Rebate”) on Horizons S&P/TSX 60™ Index ETF’s (“HXT”) annual management fee. The Rebate will remain in effect for at least 12 months, and during that time the effective annual management fee investors will pay on HXT will be reduced from seven basis points (or 0.07%) to five basis points (or 0.05%), plus applicable sales taxes.
With the Rebate, HXT will continue to be the lowest cost Canadian-listed ETF, less than half the cost of any other S&P/TSX 60™ Index ETF in Canada, and the lowest cost Canadian stock index ETF in the world.
Launched in September of 2010, HXT seeks to replicate the performance of the S&P/TSX 60™ Index (Total Return), net of expenses. The S&P/TSX 60™ Index is comprised of the 60 largest Canadian stocks and represents approximately 73% of the market capitalization of the Canadian stock market.
All other things being equal, a lower management fee should enhance the potential return of an investment. Horizons ETFs expects this reduction in HXT’s management fee to further enhance its ability over the next 12 months to, even more closely, deliver the returns of the S&P/TSX 60™ Index on a total return basis.
“Time and time again, studies have shown that keeping investment costs low is a key component to improving portfolio performance. With some online brokerages now waiving commissions on HXT, you could potentially own $1,000 of HXT units for an all-in annual cost of approximately $0.56 or 56 cents,” said Mr. Atkinson.
HXT was created with a tax efficient structure where the value of any distributions paid out by the index constituents are reflected in the net asset value of HXT, but HXT itself has not made, and does not expect to make, any taxable distributions. The only tax implications expected with owning HXT will occur when an investor sells it for a gain (or loss).
“When we launched HXT two years ago, we believed we had an ETF with a low cost, tax efficient structure which would, as closely as possible, track the S&P/TSX™ 60 Index,” said Howard Atkinson, CEO of Horizons ETFs. “Mission accomplished! HXT’s unique structure has delivered returns since its inception two years ago that have precisely tracked Canada’s most important equity benchmark on a total return basis, before its management fees and expenses.”
Source: ETFWorld - Horizons Exchange Traded Funds Inc