BMO Asset Management has cut the maximum annual management fee on seven of its exchange-traded funds (ETFs).
The fees for both institutional and retail investors will range from 0.05% to 0.25%, down from 0.15% to 0.45%.
This is the third time BMO has reduced annual fees on some of its ETFs since 2012.
“ETFs have a very diversified pool of investors, from self-directed, advisors and institutional clients, which include asset managers, wealth funds and pension plans,” says Mark Raes, head of product with BMO Global Asset Management. “In addition to other benefits such as transparency and liquidity, ETFs are low-fee solutions, each investor group sees them as cost-effective solutions.”
Here’s a review of fee changes, which are effective April 30:
| Index ETFs | Current fee | New fee |
| BMO S&P/TSX Capped Composite Index ETF | 0.15% | 0.05% |
| BMO S&P 500 Hedged to CAD Index ETF | 0.15% | 0.10% |
| BMO MSCI EAFE Hedged to CAD Index ETF | 0.35% | 0.20% |
| BMO MSCI Emerging Markets Index ETF | 0.45% | 0.25% |
| BMO Short Corporate Bond Index ETF | 0.30% | 0.12% |
| BMO S&P 500 Index ETF | 0.15% | 0.10% |
| BMO MSCI EAFE Index ETF | 0.30% | 0.20% |
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