Bringing you live news and features since 2006 

Horizons ETFs extends rebate


Horizons ETFs Management (Canada) has extended the four basis point (0.04 per cent) 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 per cent), plus applicable sales taxes.

HXT’s published management expense ratio (MER) has remained at 0.03 per cent for every reported fiscal period beginning 1 January, 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 30 September 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,” says 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 USD2 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,” says 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.”

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by