TORONTO, Feb. 11, 2013 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate Horizons ETFs Management (Canada) Inc. are pleased
to announce that the Horizons S&P/TSX 60™ Index ETF ("HXT"), Canada's lowest cost ETF, has joined the select few of Canadian ETFs
that have surpassed $1 billion in assets under management.
On October 1, 2012, Horizons ETFs announced a management fee rebate of 2
basis points which is in effect until at least September 30, 2013,
reducing the annual management fee on HXT during this time from seven
basis points (0.07%) to five basis points (0.05%), plus applicable
sales taxes. Since then, HXT has raised more than $600 million in
additional assets, more than doubling its size while average daily
trading volume has also increased to almost 1 million units.
"The announcement of our fee rebate in October coincided with the
two-year anniversary of HXT. Not only does Canada's lowest cost ETF
have a lower management fee and a tax efficient structure, it also has
a top-ranked track record of performance in its category," said Howard Atkinson, CEO of Horizons Exchange Traded Funds Inc. "The combination of these factors has really put HXT on the radar screen
of Canadian investors and brought substantial inflows into the ETF."
Launched in September of 2010, HXT seeks to replicate the performance of
the S&P/TSX 60™ Index (Total Return), net of expenses. The S&P/TSX 60™ Index is comprised of 60 of the largest Canadian publicly traded
companies, by market capitalization, and accounts for approximately 64%
of Canada's total equity market capitalization.
HXT is less than half the cost of any other S&P/TSX 60™ Index ETF in Canada, and is the lowest cost Canadian stock index ETF
available anywhere. All else being equal, a lower management fee should
lead HXT to higher returns and enhance its ability in 2013 to deliver,
even more closely, the returns of the S&P/TSX 60™ Index on a total
return basis. HXT was the best performing cap-weighted Canadian
large-cap stock index ETF in Canada for 2012, with a 7.99% total
"The S&P/TSX 60™ Index is the premier large cap Canadian equity
benchmark used by Canadian index investors. Achieving $1 billion in
assets is an important milestone for HXT, providing it with more than
enough size to support inflows from larger institutional investors," Mr. Atkinson said. "We expect that this latest milestone is just the beginning of strong
sales for HXT in 2013 and beyond."
HXT is designed to be tax efficient. The value of any distributions paid
out by the index constituents are reflected in the net asset value of
HXT, but HXT itself has not made, and does not expect to make, any
taxable distributions. The only expected tax implications of owning HXT
will occur when an investor sells units for a gain (or loss).
"We anticipate that HXT will become more appealing to investors as they
start preparing their tax filings for 2012." said Mr. Atkinson. "The taxes paid on distributions can really add up over time. Investors
who both defer and pay less in taxes on their portfolio can generate
better compounded performance than those who pay more in taxes on their
portfolio year after year."
HXT Annualized Performance (as at December 31, 2012)
HXT Annualized Performance
*Inception as of September 14, 2010
Commissions, management fees and applicable sales taxes all may be
associated with an investment in HXT. The indicated rates of returns in
the table are the historical annual compounded total returns including
changes in per unit value and do not take into account sales,
redemption, distribution or optional charges or income taxes payable by
any HXT unitholder that would have reduced returns. HXT is not
guaranteed, its value changes frequently and past performance may not
be repeated. Please read the prospectus before investing.
About Horizons Exchange Traded Funds Inc. (www.HorizonsETFs.com)
Horizons ETFs is an innovative financial services company offering the
Horizons ETFs family of exchange-traded funds (ETFs). The Horizons ETFs
family includes a broadly diversified range of investment tools with
solutions for investors of all experience levels to meet their
investment objectives in a variety of market conditions. With currently
more than $4.2 billion in assets under management and 76 ETFs listed on
the Toronto Stock Exchange, the Horizons ETFs family makes up one of
the largest families of ETFs in Canada. Horizons ETFs is a subsidiary
of Horizons ETFs Management (Canada) Inc. and a member of the Mirae
Asset Financial Group.
SOURCE: Horizons Exchange Traded Funds Inc.
For further information:
Howard Atkinson, CEO, Horizons Exchange Traded Funds Inc.
(416) 777-5167, firstname.lastname@example.org