Firm cuts fees by 20 basis points on four ETFs, including high-performing SRI fund
Horizons ETFs has reduced the management fees of four of its funds, including its first socially responsible investing ETF, by 20 basis points each.
The Horizons Global Sustainability Leaders Index ETF (TSX:ETHI) fee was cut from 0.65% to 0.45%. ETHI seeks to replicate, to the extent possible, the performance of the Nasdaq Future Global Sustainability Leaders Index, net of expenses.
The reduction was announced as ETHI achieved one-year and year-to-date returns of 16.95% and 23.14%, respectively, for the periods ending October 31, 2019. The returns reflect the lower carbon footprint of sectors that have performed well over the past five years; these have predominantly included technology stocks, which ETHI’s index tends to overweight relative to their weights in broader indices.
"Socially responsible investing is becoming increasingly more popular with investors as they seek to align their investment dollars with companies that are aligned with their social values, essentially putting their money where their mouths are," said Horizons ETFs President and CEO Steve Hawkins. “ETHI clearly demonstrates that investors can both generate attractive returns and feel good about how they invest.”
Horizons ETFs also imposed a fee reduction of 0.65% to 0.45% on three of its tech-sector ETFs, including:
- Horizons Blockchain Technology & Hardware ETF (TSX:BKCH) – focused on companies that directly contribute to blockchain innovation and development, as well as companies providing hardware and hardware-related services used in blockchain applications. It seeks to replicate the performance of the Solactive Blockchain Technology & Hardware Index, net of expenses;
- Horizons Industry 4.0 Index ETF (TSX:FOUR) – provides exposure to the performance of equity securities from issuers involved in the transformation of manufacturing and the industrial market through the implementation and development of new technologies and innovations. It seeks to replicate, to the extent possible, the performance of the Solactive Industry 4.0 Index, net of expenses; and
- The Horizons Robotics and Automation Index ETF (TSX:RBOT) – provides exposure to equity securities from companies involved in the development of robotics and/or artificial intelligence. It seeks to replicate, to the extent possible, the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index.
