Scotia Global Asset Management, a division of ScotiaBank, one of Canada’s ‘Big Five’ banks, has introduced a suite of ultra-low-cost ETFs tracking broad, market capitalization-weighted indices.
The ETFs come with management fees ranging between 0.03% and 0.15%.
The suite includes a multi-sector Canadian bond fund as well as three equity strategies targeting stocks from Canadian, US, and global ex-North America universes.
The ETFs have listed on Canada’s NEO Exchange and are linked to indices from Frankfurt-based Solactive.
The Scotia Canadian Bond Index Tracker ETF (SITB US) comes with a management fee of 0.05% and an administration fee of 0.03%. The fund tracks the Solactive Broad Canadian Bond Universe Liquid ex MPL Index which consists of CAD-denominated investment-grade government and corporate bonds issued in Canada.
The Scotia Canadian Large Cap Equity Index Tracker ETF (SITC US) comes with a management fee of 0.03% and an administration fee of 0.02%. It tracks the Solactive Canada Large Cap Index which consists of the 60 largest stocks listed in Canada.
The Scotia US Equity Index Tracker ETF (SITU US) comes with a management fee of 0.05% and an administration fee of 0.03%. It is linked to the Solactive GBS United States 500 CAD Index which consists of the 500 largest US-listed stocks, effectively a generic equivalent of the bellwether S&P 500.
The Scotia International Equity Index Tracker ETF (SITI US) comes with a management fee of 0.15% and an administration fee of 0.05%. It tracks the Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index which covers stocks listed in 22 advanced economies outside of North America.
Neal Kerr, Senior Vice-President and Head of Scotia Global Asset Management, commented, “Canadian investors entrust us with their life savings across a broad spectrum of investment solutions. We are pleased to further expand our ETF line-up to provide them with greater choice.”
The funds represent Scotia Global’s first passive ETFs, building on its suite of four actively managed ETF Portfolio ETFs. These ETFs-of-ETFs invest in a range of unaffiliated funds, including active, smart beta, and pure passive products to provide broadly similar exposures as its new ultra-low-cost offering. The portfolios come with management expense ratios between 0.45% and 0.60%. As yet, they have not caught on with investors, with the suite collectively housing just CAD 10 million in assets under management.