The Globe and Mail reports in its Saturday edition that there is an odd exception to the success of BMO's made-in-Canada ETF business. The Globe's Rob Carrick writes that BMO is not much of a player in the growing segment of the exchange-traded fund business catering to investors who want a low-cost, fully diversified portfolio in a single ETF. And so, BMO is cutting the cost of its suite of four asset allocation ETFs. The management fee for each fund falls by 0.3 of a percentage point to 0.15 per cent as of the close of business on Friday. The management fee is the biggest component of the management expense ratio, a definitive measure of how much it costs to own an ETF or mutual fund. MERs for the four BMO asset allocation ETFs are currently 0.2 per cent, so expect something like 0.17 per cent once the management fee is cut. The modest MER premium gets you full diversification in bonds and Canadian, U.S. and international stocks and automatic rebalancing to ensure holdings stay close to the target asset mix. Fee competition between asset allocation fund providers comes down to how much of a premium to charge. BMO's bet is that lower fees will pay off by attracting more money from cost-conscious DIY investors.