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Competition in the ETF industry is putting pressure on fees. In June, BMO Asset Management Inc. announced that it is reducing the annual management fee on the BMO Aggregate Bond Index ETF (ZAG-T) from 0.09 per cent to 0.08 per cent. ZAG’s new management fee aligns with that of a similar ETF, the Vanguard Canadian Aggregate Bond Index ETF (VAB-T). Vanguard Investments Canada lowered the management fee of its popular fixed income ETF from 0.12 per cent to 0.08 per cent in Feburary. In did not take long for BMO to adjust the fee of ZAG, in fear of losing assets.
Another ETF had its management fee reduced. As a result of a change in its replicating index, the management fee of the Horizons Robotics and Automation Index ETF (RBOT-T) was decreased from 0.75 per cent to 0.68 per cent. RBOT is Canada’s first robotics and A.I. ETF. It now seeks to replicate, to the extent possible, the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index, net of expenses.
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