Are Commodities About to Break Out?

September 19, 2017
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BY: NICOLAS PIQUARD, CFA®, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

Recently, we’ve witnessed a significant run-up in the price of gold. In fact, we’re getting close to the highs gold made in 2016. What’s fueling this trend?

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Covered Calls and Gold – A Perfect Match

September 11, 2017
Covered Calls and Gold – A Perfect Match  

BY: HANS ALBRECHT, CIM®, FCSI®, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

This is a fairly consistent rule in listed options markets: As assets rise in value, option pricing tends to pull back on a relative basis. As markets push higher, investors are deemed to be less fearful and therefore the cost to insure a portfolio against a market drops.

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Is Market Correlation Hiding Movement?

September 01, 2017
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BY: HANS ALBRECHT, CIM®, FCSI®, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

One of the reasons cited for declining broader market volatility this year has been the sharp drop in equity correlation. But what exactly does “correlation” mean when it comes to the stock market?

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ETP Compounding in Focus – Part 1

August 16, 2017
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BY: HANS ALBRECHT, CIM®, FCSI, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

When talking about volatility exchange traded products (“ETPs”) I always like to highlight both their advantages and disadvantages.

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Advisor Sentiment is Mixed - Buying Favours Canadian and International Equities

August 04, 2017
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BY: MARK NOBLE, SENIOR VICE-PRESIDENT AND HEAD OF SALES STRATEGY, HORIZONS ETFS

Canadian investment advisors seem neither bullish nor bearish on most of the asset classes surveyed in the Q3 2017 Advisor Sentiment Survey that Horizons ETFs conducts each quarter.

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Low Volatility Persistence

July 27, 2017
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BY: HANS ALBRECHT, CIM®, FCSI®, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

This year has not been kind to holders of long options. Equities have either gone sideways, as they have in Canada, or they have slowly edged upwards, as has been the case in the U.S. Is there hope?

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Is There Opportunity in a Low Volatility Environment?

July 21, 2017
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BY: HANS ALBRECHT, CIM®, FCSI, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

I love great volatility questions from readers, and here’s one of them:

Q: Aren’t options priced too inexpensively in a low volatility environment? Why would I want to sell them?

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Looking Beyond Canada (and the U.S.)

July 04, 2017
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BY: MARK NOBLE, SENIOR VICE-PRESIDENT AND HEAD OF SALES STRATEGY, HORIZONS ETFS

On average, Canadian investors have more than enough Canadian equity exposure, especially in comparison to the importance of Canadian equities on a global level.

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Buyers of Options Face an Uphill Climb

June 30, 2017
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BY: HANS ALBRECHT, CIM®, FCSI, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

S&P 500® Index (“the Index”) options are generally priced a little too high versus actual market movement. In other words, many buyers of insurance will pay more than ‘fair value’ for options in order to protect against drawdowns and volatile market environments.

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Feeling Marginally Worried?

June 19, 2017
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BY: NICOLAS PIQUARD, CFA®, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

I have seen rumblings in the press recently that we are setting new highs in borrowed margin, based on New York Stock Exchange (“NYSE”) data. The theory goes like this: As more people borrow on margin to purchase stocks, they will be less able to navigate a down-move in equities.

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Horizons ETFs is a Member of Mirae Asset Global Investments. Commissions, trailing commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by Horizons ETFs Management (Canada) Inc. (the "Horizons Exchange Traded Products"). The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.

The Horizons Exchange Traded Products consist of the Horizons Index ETFs ("Index ETFs"), 2x Daily Bull and -2x Daily Bear ETFs ("2x Daily ETFs"), Inverse ETFs ("Inverse ETFs"), VIX ETFs (defined below) and active ETFs. The 2x Daily ETFs and certain other Horizons Exchange Traded Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These Horizons Exchange Traded Products are subject to leverage risk and may be subject to aggressive investment risk and price volatility risk, which, where applicable, are described in their respective prospectuses. Each 2x Daily ETF seeks a return, before fees and expenses, that is either 200% or -200% of the performance of a specified underlying index, commodity or benchmark (the "Target") for a single day. Each Index ETF or Inverse ETF seeks a return that is 100% or -100%, respectively, of the performance of a Target. Due to the compounding of daily returns, a 2x Daily ETF's or Inverse ETF's returns over periods other than one day will likely differ in amount and possibly direction from the performance of their respective Target(s) for the same period. The Horizons Exchange Traded Products whose Target is the S&P 500 VIX Short-Term Futures Index™ (the "VIX ETFs"), one of which is a 2x Daily ETF and one of which is an Index ETF, as described in their prospectus, are speculative investment tools that are not conventional investments. The VIX ETFs' Target is highly volatile. As a result, the VIX ETFs are not generally viewed as stand-alone long-term investments. Historically, the VIX ETFs' Target has tended to revert to a historical mean. As a result, the performance of the VIX ETFs' Target is expected to be negative over the longer term and neither the VIX ETFs nor their Target are expected to have positive long term performance. Investors should monitor their holdings, as frequently as daily, to ensure that they remain consistent with their investment strategies.

*The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the ETF or returns on investment in the ETF. Only the returns for periods of one year or greater are annualized returns.