Lowest-cost ETF surpasses $1 billion in assets

The Horizons S&P/TSX 60 Index ETF (HXT) has surpassed $1 billion in assets under management.

On October 1, 2012, Horizons announced it has a management fee rebate of 2 basis points, which is in effect until at least September 30, 2013. This reduces the annual management fee on HXT during the period from seven basis points to five basis points, plus applicable sales taxes.

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Since that notice, the fund has raised more than $600 million in additional assets, with its average daily trading volume increasing to 1 million units.

“The combination of these factors has really put HXT on the radar screen of Canadian investors and brought substantial inflows into the ETF,” says Howard Atkinson, CEO of Horizons Exchange Traded Funds.

The fund seeks to replicate the performance of the S&P/TSX 60 Index, which is comprised of 60 of the largest Canadian publicly traded companies by market capitalization.

“The S&P/TSX 60 Index is the premier large-cap Canadian equity benchmark used by Canadian index investors,” adds Atkinson. Reaching this milestone [gives HXT] more than enough size to support inflows from larger institutional investors.”

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