Global X Cuts Fees on Active Municipal Bond ETF
Event summary
- Global X Investments Canada Inc. permanently reduced the management fee for the Global X Active Canadian Municipal Bond ETF (HMP) from 0.29% to 0.25% effective February 10, 2026.
- The ETF, ticker HMP, invests in Canadian municipal bonds and is sub-advised by Fiera Capital Corporation.
- Global X manages over $50 billion in assets as of January 31, 2026, across 156 ETFs.
- Fiera Capital Corporation trades on the Toronto Stock Exchange under the ticker FSZ.
The big picture
Global X’s fee reduction on the HMP ETF signals a competitive response within the Canadian ETF market, particularly as firms seek to retain and attract investors. The move highlights the increasing pressure on asset managers to demonstrate value and transparency, especially in a low-interest-rate environment. This action could be a test case for Global X’s broader strategy regarding active management fees across its ETF suite.
What we're watching
- Competitive Response
- Other Canadian ETF providers may feel pressure to match or undercut Global X’s fee reduction, potentially triggering a broader price war within the municipal bond ETF space.
- AUM Impact
- The fee reduction’s impact on HMP’s assets under management will be key; lower fees could attract new investors, but may also signal margin pressure for Global X.
- Fiera Alignment
- The long-term implications of this fee adjustment on Fiera Capital's relationship with Global X, and the potential for similar actions across other sub-advised funds, warrants observation.
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