Horizons S&P/TSX 60 Equal Weight Index ETF (HEW:CA)
The investment objective of the Horizons S&P/TSX 60 Equal Weight Index ETF is to seek to replicate the performance of the S&P/TSX 60 Equal Weight Index, net of expenses. The S&P/TSX 60 Equal Weight Index is an equal weight diversified index of the constituent issuers in the S&P/TSX 60 Index.
IFM Investment Tip:
Most indices are based upon a Market Capitalization Weighting structure.
What does that mean?
Well, an index constructed by market capitalization can often lead to sector drift as markets rise and fall. The market capitalization of each stock is determined by taking the share price and multiplying it the number of shares outstanding. The companies with the largest market capitalization, or the greatest values, will have the highest weights in the index. The weight of a company in the index is equal to the market cap of that company divided by the total market cap of all the companies in the index.
An equal weighted index is just as it sounds. Every stock in the index has the same weight, regardless how large or small the company is in the market.
Although this ETF strives to invest equal $ amounts in each of the individual company's shares it does not attempt to invest equal amounts in each stock market sector. For example, as at September 2017, this ETF had approximately 21.18% invested in the Energy Sector (includes pipelines), 16.92% in the Materials Sector, 16.91% in the Financials Sector and 9.76% in the Consumer Discretionary Sector. Although the $ amounts invested in each sector are not equally weighted, this equal-weight ETF maintains a much better sector balance than an ETF investing in the standard market cap weighted S&P/TSX 60 Index.
- Fact Sheet
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- Underlying Index/Commodity
- S&P/TSX 60 Equal Weight Index
- Asset Category
- Growth Investments
- Average Duration
- Average Maturity
- Date Established
- July 14, 2010
- Annual Management Fee
- 0.50% Plus 0.05% Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.22% (2016)
- Management Expense Ratio (MER)
- 0.77% (2016)
- Additional Performance Fee(s)
- Yes - In 2016, the ETF had a yield equal to 1.52% net of Return of Capital (ROC) payments.
- Distribution Dates
- Quarterly - March, June, September and December
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes Visit ETF Website for details
- Tax Efficient
- Rebalancing Frequency
- Quarterly - on or about the 3rd Friday of March, June, September and December.
- Portfolio Turnover Ratio
- Was 120.25% in 2016, 35.79% in 2015, 42.35% in 2014, 37.84% in 2013, 50.02% in 2012, 83.74% in 2011 and 11.37% in 2010.
- Simplified Prospectus
- Last Updated