BMO cuts fees on five equity and fixed income ETFs

Jun 21st, 2016 | By | Category: ETF and Index News

Canadian investment fund manager BMO Asset Management has cut its fees on five ETFs providing access to the broad Canadian fixed income market, regular and currency hedged exposures to the S&P 500, and investment in the short-term Canadian corporate bond market.

BMO lowers fees on five equity and fixed income ETFs

The reduction in fees of the BMO Aggregate Bond Index ETF and BMO Discount Bond Index ETF from 0.20% to 0.09% has earned BMO the title of the lowest-cost provider of fixed income ETFs in Canada.

Coming into force on 22nd June, the annual management fees for the ETFs will be reduced as follows:

BMO Aggregate Bond Index ETF (ZAG) will fall from 0.20% to 0.09%; BMO Discount Bond Index ETF (ZDB) will fall from 0.20% to 0.09%; BMO S&P 500 Hedged to CAD Index ETF (ZUE) will fall from 0.10% to 0.08%; BMO S&P 500 Index ETF (ZSP/ZSP.U) will fall from 0.10% to 0.08%; BMO Short Corporate Bond Index ETF (ZCS) will fall from 0.12% to 0.10%

Kevin Gopaul, Senior Vice President and Global Head of ETFs, BMO Asset Management, commented: “We consistently review our product shelf to find cost efficiencies to pass through to our clients. We further reduced fees on some of our largest and fastest growing ETFs, demonstrating our commitment to providing our clients with cost-efficient solutions.”

Gopaul continued: “Clients are recognising the value and liquidity of using low-cost ETFs for fixed income exposures in their portfolios. We’re pleased to deliver a fee reduction of more than 50% on our broad market Canadian fixed income ETFs. We also now offer the lowest cost fixed income ETFs in Canada – BMO Aggregate Bond Index ETF and BMO Discount Bond Index ETF. As well, these fee reductions will help clients by lowering ETF fees for US investing. This continues our trend of delivering the best solutions for our clients, following fee reductions in 2012, 2013 and 2014.”

 

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