Account fees are calculated as a percentage based on how much you’ve invested.
What they cover
An account fee covers professional portfolio management (those experts monitoring and rebalancing your investments!) and support from a team of investment advisors should you have any questions or need any help.
What it doesn’t cover is commission on trades – that’s free!
A look at our fee schedule
Here’s what you can expect based the amount you invest.
To benefit from lower pricing at higher asset balances, accounts can be grouped by household.
For example, if Paul invests $275,000, his total yearly fee would be $1,725.
Here’s the breakdown of how he’s charged:
First $100,000 at 0.7% = $700
Next $150,000 at 0.6% = $900
Next $25,000 at 0.5% = $125
The fine print
Fees are charged per account unless otherwise stated and are subject to change.
You’ll receive 60 days’ notice for any new or amended fee.
SmartFolio fees compared to traditional investing fees
Annual advisory (or account) fees based on a $60,000 investment
The cost of traditional investing is based on a 2.25% advisory fee or MER.
MER fees explained
SmartFolio accounts are made up of ETF portfolios, and all ETFs have management fees and expenses that are calculated as Management Expense Ratio (MER) in addition to the advisory fee. The MER is included within the pricing of the ETFs themselves and will not appear as an expense item on your account statement(s). The MER of the ETFs held within your portfolio will likely be a weighted average of 0.20% to 0.35% of the value of your SmartFolio account.
Interest on a credit balance in your account is subject to change without notice, and may vary. Please check your BMO SmartFolio Investment Management Agreement for more details. Interest isn’t paid if the amount accrued is less than $5 per month. BMO Nesbitt Burns may earn revenue from the use of cash credit balances.
If foreign currency conversions are needed in your account, BMO Nesbitt Burns will act as the principal, unless we notify you otherwise. Exchange rates determined by BMO Nesbitt Burns or related parties are subject to change without notice and may vary according to the market, type of currency and the value of the trade. Along with commission or other fees that apply, we’ll earn spread revenue of up to 1.5% from a foreign currency conversion.
If you close your account, any accrued unpaid advisory fees must be paid. These fees are subject to GST, QST, and/or HST where it applies. You’ll also be charged for any sales, use, goods and services, harmonized sales, value added, and transaction taxes that are a result of transactions made in your account.
Ready to start investing?
Open your SmartFolio account and let us help you reach your financial goals. Start by getting matched with an ETF Portfolio.