TORONTO, Jan. 4, 2022 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs" or the "Manager") is pleased to announce a
continuation of the three basis point (0.03%) rebate on the annual
management fee of the Horizons S&P/TSX 60™ Index ETF
("HXT") that will remain in effect until at least
December 31, 2022. This means that
the effective annual management fee on HXT for the full 2022
calendar year will continue to be four basis points (0.04%), plus
applicable sales taxes.
As a result of the rebate, HXT continues to remain amongst the
lowest-cost ETFs listed in Canada,
with a projected 2022 management expense ratio ("MER") of
four basis points (0.04%) which the Manager expects to be the
lowest MER, or equal to the lowest MER, for all currently listed
ETFs in Canada+.
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. Launched in September 2010,
HXT is the oldest and second largest ETF within Horizons ETFs'
family of tax-efficient Total Return Index (TRI) ETFs.
"With nearly $3 billion in
assets under management, HXT is one of our largest ETFs and with
this rebate, it should continue its tradition of being at the top
of the list of Canada's lowest
cost ETFs," said Steve Hawkins,
President and CEO of Horizons ETFs.
Unlike a traditional physical replication ETF that typically
purchases the securities found in the relevant index in the same
proportions as the index, HXT currently uses a synthetic structure
that doesn't buy the securities of the index directly. Instead, HXT
receives the total return of the applicable index by entering into
Total Return Swap agreements with one or more of the Canadian
banks, which provide HXT with the total return of the S&P/TSX
60™ Index.
The three basis point (0.03%) rebate originally went into effect
on January 1, 2021 and remains in
effect. For more information on HXT or any of Horizons ETFs family
of Total Return Index ETFs, investors can visit
www.horizonsetfs.com/TRI.
For more information about HXT, please visit:
www.HorizonsETFs.com/HXT
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
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 $20 billion of
assets under management and 104 ETFs listed on major Canadian stock
exchanges.
+ based on all publicly available information as
at the time of this press release
Commissions, management fees and expenses all may be
associated with an investment in exchange traded products (the
"Horizons Exchange Traded Products") managed by Horizons ETFs
Management (Canada) Inc. The
Horizons Exchange Traded Products are not guaranteed, their values
change frequently and past performance may not be repeated. The
prospectus contains important detailed information about the
Horizons Exchange Traded Products. Please read the relevant
prospectus before investing.
Certain statements may constitute a forward-looking
statement, including those identified by the expression "expect,
"anticipate" and similar expressions (including grammatical
variations thereof). The forward-looking statements are not
historical facts but reflect the author's current expectations
regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from
current expectations. These and other factors should be considered
carefully and readers should not place undue reliance on such
forward-looking statements. These forward-looking statements are
made as of the date hereof and the authors do not undertake to
update any forward-looking statement that is contained herein,
whether as a result of new information, future events or otherwise,
unless required by applicable law.
Horizons Total Return Index ETFs ("Horizons TRI ETFs") are
generally index-tracking ETFs that use an innovative investment
structure known as a Total Return Swap to deliver index returns in
a low-cost and tax-efficient manner. Unlike a physical replication
ETF that typically purchases the securities found in the relevant
index in the same proportions as the index, most Horizons TRI ETFs
use a synthetic structure that never buys the securities of an
index directly. Instead, the ETF receives the total return of the
index through entering into a Total Return Swap agreement with one
or more counterparties, typically large financial institutions,
which will provide the ETF with the total return of the index in
exchange for the interest earned on the cash held by the ETF. Any
distributions which are paid by the index constituents are
reflected automatically in the net asset value (NAV) of the ETF. As
a result, the Horizons TRI ETF receives the total return of the
index (before fees), which is reflected in the ETF's share price,
and investors are not expected to receive any taxable
distributions. Certain Horizons TRI ETFs (Horizons Nasdaq-100 ®
Index ETF and Horizons US Large Cap Index ETF) use physical
replication instead of a total return swap. The Horizons Cash
Maximizer ETF and Horizons USD Cash Maximizer ETF use cash accounts
and do not track an index but rather a compounding rate of interest
paid on the cash deposits that can change over time.
SOURCE Horizons ETFs Management (Canada) Inc.
