Horizons lowers fees on Canadian banks, REITs, and preferred shares ETFs

Dec 2nd, 2019 | By | Category: Alternatives / Multi-Asset

Horizons ETFs has lowered the management fees on three Toronto-listed ETFs providing exposure to Canadian banking stocks, REITs, and preferred shares.

Steve Hawkins, President and CEO of Horizons ETFs.

Steve Hawkins, President and CEO of Horizons ETFs.

Following the move, the ETFs become the best-priced within their respective peer groups in Canada, as measured by management fee.

The Horizons Equal Weight Canada Banks Index ETF (HEWB CN) has had its management fee lowered from 0.45% to 0.30%.

The fund tracks the Solactive Equal Weight Canada Banks Index which consists of an equally weighted portfolio of Canada-listed equities from firms designated as ‘major banks’ or ‘regional banks’ according to FactSet. Eligible securities must have a market capitalization greater than C$10 billion.

The Horizons Equal Weight Canada REIT Index ETF (HCRE CN) has had its management fee lowered from 0.50% to 0.30%. It tracks the Solactive Equal Weight Canada REIT Index which covers a diverse range of Canada-listed REITs with market capitalizations greater than C$800 million. The index’s constituents are also equally weighted.

The Horizons Laddered Canadian Preferred Share Index ETF (HLPR CN) has had its management fee lowered from 0.40% to 0.30%. It tracks the Solactive Laddered Canadian Preferred Share Index which consists of Canadian preferred shares that generally have an adjustable dividend rate. The index consists of five equally weighted maturity buckets: one year, two years, three years, four years, and one bucket covering instruments for zero and five years to maturity. Constituents are weighted by market capitalization within their maturity buckets subject to a total index cap of 12.5% per issuer.

Steve Hawkins, President and CEO of Horizons ETFs, commented, “Not only will these ETFs be offered at lower fees than most other similar competitor products, but these ETFs also have the added value of offering low potential for tracking error, which can be an issue, particularly with income-generating ETFs like preferred shares.”

He added, “We have been successfully managing these types of index-tracking strategies for more than ten years now and believe the combination of the low fees, reduced potential for tracking error, and tax-efficiency make these ETFs best in class options for Canadian ETF investors.”

Last month, Horizons reduced the management fee on three of its technology-focused ETFs to 0.45%. They are the Horizons Blockchain Technology & Hardware ETF (BKCH CN), the Horizons Industry 4.0 Index ETF (FOUR CN), and the Horizons Robotics and Automation Index ETF (RBOT CN).

Tags: , , , , , , ,

Comments are closed.



Discover more from ETF Strategy

Subscribe now to keep reading and get access to the full archive.

Continue reading