Toronto-based Horizons ETFs Management (Canada) Inc. is lowering the management fees on two ETFs in its lineup.
Specifically, management fees for Horizons S&P/TSX Capped Energy Index ETF and Horizons S&P/TSX Capped Financials Index ETF have been reduced to 0.25% from 0.35% effective April 1.
“Now with a management fee of only 25 basis points, these two ETFs are less than half the cost of the leading competitor ETFs that tack these same or similar indices,” says Steve Hawkins, co-CEO and president of Horizons ETFs, in a statement.
In addition, the two EFTs also offer certain tax advantages for investors through the use of an index that leverages a “synthetic replication structure to receive pre-tax total return of an index,” the firm’s announcement states.
This means that as opposed to “physically replicated” ETFs, the value of any dividend produced is reflected in the ETF’s performance.