Horizons S&P/TSX Capped Financials Index ETF (HXF:CA)
Horizons HXF seeks to replicate, to the extent possible, the performance of the S&P/TSX Capped Financials Index (Total Return), net of fees and expenses.
IFM Investment Tip: This ETF uses Horizons' unique swap structure. The ETF does not actually buy and hold the individual investments that comprise the underlying S&P/TSX Capped Financials Index. This structure allows for lower management fees and greater tax efficiency. Since the value of any dividend distributions paid out by index constituents is reflected in the total return of the index and therefore an ETF’s net asset value (NAV), these ETFs do not make taxable distributions of those dividends. The only tax implications for an individual investor in HXF will generally occur when that investor sells their units on an exchange for a capital gain (or loss).
The swap structure essentially defers the dividend tax liability, so that individual investors only pay taxes when they sell their ETF units on an exchange for a capital gain.
Investors should keep in mind the underlying index is a Market Cap-Weighted index with large exposure (64.07%) to Canada's 5 largest banks - with 18.96% of the ETF invested in Royal Bank shares.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- S&P/TSX Capped Financials Index (Total Return)
- Asset Category
- Growth Investments
- Average Duration
- Average Maturity
- Date Established
- September 17, 2013
- Annual Management Fee
- 0.35% plus 0.04% in Operating expenses (2016)
- Trading Expense Ratio (TER)
- 0.00% (2016)
- Management Expense Ratio (MER)
- 0.39% (2016)
- Additional Performance Fee(s)
- None to date.
- Distribution Dates
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Tax Efficient
- Yes. This ETF uses Horizon's swap structure.
- Rebalancing Frequency
- Undelying Index is reviewed and rebalanced quarterly
- Portfolio Turnover Ratio
- Was 251.10% in 2016, 140.23% in 2015 and 97.33% in 2014
- Last Updated