TORONTO, January 4, 2022 / CNW / – Management of the Horizons ETFs (Canada) Inc. (“Horizons ETFs“or the”Director“) is pleased to announce the continuation of the three basis point (0.03%) rebate on the annual management fee of the Horizons S & P / TSX 60TM ETF (“HXT“) which will remain in force until at least December 31, 2022. This means that the effective annual management fee on HXT for the entire 2022 calendar year will continue to be four basis points (0.04%), plus applicable sales taxes.
Thanks to the rebate, HXT continues to be among the cheapest ETFs listed in Canada, with a forecast management expense ratio in 2022 (“REM“) four basis points (0.04%) that the Manager expects to be the lowest MER, or equal to the lowest MER, for all ETFs currently listed 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 of the tax-advantaged Horizons ETF family of 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 from Canada the cheapest ETFs,” noted Steve hawkins, President and CEO of the Horizons ETFs.
Unlike a traditional physically replicating ETF which typically buys the securities found in the relevant index in the same proportions as the index, HXT currently uses a synthetic structure that does not directly buy the securities in the index. Instead, HXT receives the total return of the applicable index by entering into total return swap agreements with one or more Canadian banks, which provide HXT with the total return of the S & P / TSX 60 ™ Index.
The discount of three basis points (0.03%) originally came into effect on January 1, 2021 and remains in effect. For more information about HXT or any of the Horizons ETF Index Total Return ETF families, investors can visit www.horizonsetfs.com/TRI.
For more information on HXT, please visit: www.HorizonsETFs.com/HXT
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Management of the Horizons ETFs (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange-traded funds in Canada. The Horizons ETF product family includes a broadly diverse range of solutions for investors of all levels of experience to achieve their investment objectives in various market conditions. Horizons ETFs have more than $ 20 billion of assets under management and 104 ETFs listed on major Canadian stock exchanges.
+ based on all information publicly available at the time of this press release
Commissions, management fees and expenses may all be associated with an investment in exchange traded products (the “Horizons Exchange Traded Products”) managed by Horizons ETFs Management (Canada) Inc. 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 phrase “expect,” anticipate “and similar phrases (including grammatical variations thereof). 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 which could cause actual results or events to differ materially from current expectations. These and other factors should be carefully considered and readers should not place undue reliance on these 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 statements contained herein, whether as a result of new information, future events or otherwise, except as required. by law.
Horizons Total Return Index ETFs (“Horizons TRI ETF”) are generally index ETFs that use an innovative investment structure known as Total Return Swap to generate index returns in an economical and tax-efficient manner. Unlike a physically replicating ETF which generally 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 directly purchases the securities of an index. Instead, the ETF receives the total return of the index by entering into a total return swap agreement with one or more counterparties, usually large financial institutions, which will provide the ETF with the total return of the index. in exchange for interest earned on cash held by the ETF. All distributions paid by index constituents are automatically reflected in the net asset value (NAV) of the ETF. Therefore, the Horizons TRI ETF receives the total index return (before fees), which is reflected in the ETF’s share price, and investors are not expected to receive taxable distributions. Some 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 the Horizons USD Cash Maximizer ETF use cash accounts and do not track an index, but rather a compound interest rate paid on cash deposits which can change over time.
Management of the Horizons SOURCE ETFs (Canada) Inc.
See original content: http://www.newswire.ca/en/releases/archive/January2022/04/c3453.html