Now in its eighth year, HXT is the lowest-cost ETF in
Canada with an effective
management fee of 0.03%
TORONTO, Oct. 3, 2018 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons ETFs") is
pleased to announce that it has extended 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. HXT's published management
expense ratio ("MER") has remained at 0.03% for every reported
fiscal period beginning January 1,
2016. With the extension of the rebate, HXT continues as the
lowest-cost Canadian equity ETF. This rebate will remain in effect
until at least September 30,
2019.
HXT seeks to replicate, to the extent possible, the performance
of the S&P/TSX 60™ Index (Total Return), net of
expenses. The S&P/TSX 60™ Index (Total Return) is
designed to measure the performance of the large-cap market segment
of the Canadian equity market.
"Recently, investors have witnessed a growing number of
low-management fee ETFs on the market," said Steve Hawkins, President and CEO of Horizons
ETFs. "Eight years ago, we launched HXT as Canada's lowest-cost ETF. We're proud of our
role in pioneering a trend that provides better value for investors
while maintaining HXT's status as the lowest-cost ETF in the
country.
HXT is Horizons ETFs' oldest Total Return Index ("TRI") ETF and
largest in terms of assets under management ("AUM"). In August of
2018, HXT surpassed $2 billion in
AUM, joining only 10 other ETFs in Canada to have previously achieved that
mark.
The investment structure of HXT involves agreements 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
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.
"As a fund within our suite of TRI strategies, HXT's value is
enhanced by its tax-deferral advantages. In fact, HXT has not paid
a single taxable distribution to its end unitholders since its
inception in 2010." said Mr. Hawkins. "For this reason, HXT
continues to be a leading choice among investors for exposure to
the sixty largest stocks listed on the Toronto Stock
Exchange."
About Horizons ETFs Management (Canada) Inc.
Horizons ETFs Management (Canada) Inc. is an innovative financial
services company and offers one of the largest suites of exchange
traded funds in Canada. The
Horizons ETFs product family includes a broadly diversified range
of solutions for investors of all experience levels to meet their
investment objectives in a variety of market conditions. Horizons
ETFs has more than $11 billion of
assets under management and 83 ETFs listed on major Canadian stock
exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset
Global Investments Group.
SOURCE Horizons ETFs Management (Canada) Inc.
