Horizons ETFs Management (Canada) Inc. has changed the management fee structure of the Horizons S&P/TSX 60 Equal Weight Index ETF (HEW).
The change, effective immediately, reduces the annual management fee to 0.40% or 40 basis points on any portion of the net assets of HEW over $30 million. Previously, the annual management fee was 0.50% on all the net assets of HEW. The ETF’s management fees are calculated and accrued daily and payable monthly in arrears.
“The Canadian stock market is heavily concentrated amongst a handful of stocks in three sectors: financials, energy and materials. An equal weight approach tends to reduce the heavy weightings to the largest stocks in the index and provide greater sector diversification,” says Howard Atkinson, president of Horizons ETFs.