The ETF fee war has spread to Canada.

BMO Asset Management [profile] has reduced the management fees for two of its exchange-traded funds, according to a company press release.

By November 1, the fee for the BMO S&P 500 Hedged to CAD Index ETF will be cut 31.8 percent, to 15 basis points, while the fee for the BMO Aggregate Bond Index ETF will be trimmed 28.6 percent, to 20 basis points.

The company press release is below. A BMO spokesperson was not immediately available for comment to MFWire.

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Company Press Release

BMO Asset Management Lowers Cost of ETF Investing

TORONTO, ONTARIO - BMO Asset Management Inc. (BMO Asset Management) today announced that it is reducing the management fee that will be charged to certain BMO Exchange Traded Funds (BMO ETFs).

Effective on or about November 1, 2012, the maximum annual management fee for BMO S&P 500 Hedged to CAD Index ETF (ZUE) will be reduced by 31.8 per cent to 15bps and the maximum annual management fee for BMO Aggregate Bond Index ETF (ZAG) will be reduced by 28.6 per cent to 20bps.

"We strive to provide the most competitive offerings in the marketplace and we are pleased with the success of these two funds," said Kevin Gopaul, Chief Investment Officer and Senior Vice President, BMO Asset Management Inc. "We will continue to anticipate the needs of our investors and will keep seeking opportunities to lower costs and increase growth where possible."

*BMO ETFs are managed and administered by BMO Asset Management, a portfolio manager and investment fund manager and separate legal entity from Bank of Montreal.

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.

"S&P®" and "S&P 500®" are trademarks of Standard & Poor's Financial Services LLC. These and other associated trademarks and/or service marks have been licensed for use by BMO Asset Management. None of the BMO ETFs are sponsored, endorsed, sold or promoted by the aforementioned trademark owner and the related index provider (including S&P Dow Jones Indices LLC), or their respective affiliates or their third party licensors, and these entities make no representation, warranty or condition regarding the advisability of buying, selling or holding units in the BMO ETFs.

Further information about BMO ETFs can be found at www.bmo.com/etfs.

About BMO Exchange Traded Funds (ETFs)

Established in May 2009, BMO Financial Group's ETF business is a leading ETF provider in Canada. Since its inception, the lineup of BMO ETFs has grown to 44 funds totalling over $7 billion in assets and includes several industry firsts. BMO ETFs provide Canadian investors with broader choices and greater access to an innovative portfolio of investment products.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions. 

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