BMO Asset Management is reducing the maximum annual management fee on five of its exchange traded funds.
Effective on or about 22 June, 2016, the annual management fee for the ETFs will be reduced as follows:
BMO Aggregate Bond Index ETF (ZAG) 0.20 down to 0.09
BMO Discount Bond Index ETF (ZDB) 0.20 down to 0.09
BMO S&P 500 Hedged to CAD Index ETF (ZUE) 0.10 down to 0.08
BMO S&P 500 Index ETF (ZSP/ZSP.U) 0.10 down to 0.08
BMO Short Corporate Bond Index ETF (ZCS) 0.12 down to 0.10
"We consistently review our product shelf to find cost efficiencies to pass through to our clients," says Kevin Gopaul, Senior Vice President and Global Head of ETFs, BMO Asset Management Inc. "We further reduced fees on some of our largest and fastest growing ETFs, demonstrating our commitment to providing our clients with cost-efficient solutions.
"Clients are recognising the value and liquidity of using low-cost ETFs for fixed income exposures in their portfolios. We're pleased to deliver a fee reduction of more than 50 per cent on our broad market Canadian fixed income ETFs. We also now offer the lowest cost fixed income ETFs in Canada – BMO Aggregate Bond Index ETF and BMO Discount Bond Index ETF. As well, these fee reductions will help clients by lowering ETF fees for U.S. investing. This continues our trend of delivering the best solutions for our clients, following fee reductions in 2012, 2013 and 2014."