[Moneysense.ca:] For taxable accounts, the Horizons S&P/TSX 60 Index ETF (HXT) is back from last year and should appeal to investors who focus on large-cap stocks. But the main reason for holding HXT is its extreme tax efficiency: it uses an instrument called a “total-return swap” to defer the tax liability of dividends by in effect commuting them to capital gains that won’t be realized until you sell your shares. Launched in 2010, the fee on HXT is 0.07%, but after a rebate it’s 0.05%, an offer that will stay in place at least until September 2015.
[Horizons ETFs:] Fees
Management Fee: 0.07%*
* Annual management fee rebated by 2bps (0.02%) to an effective management fee of 5bps, or 0.05%, until at least September 30, 2015
What hidden motives underlie the decision to rebate part of a management fee (eg the 0.02% above), instead of reducing it beforehand and outright? The latter's superior simplicity leads me to fear and suspect some hidden intents.