What are Horizons Leveraged ETFs?

Horizons Leveraged ETFs can provide the investor with double the daily exposure (either long or short) to a commodity, benchmark or index. They seek to deliver 2X the daily return (either on the upside or on the downside), before fees and expenses, of that commodity, benchmark or index.

Who should buy them?

Investors who want to increase their exposure or hedge an investment.

How do investors use Horizons Leveraged ETFs?

Horizons Leveraged ETFs offer 200% daily exposure to a commodity, benchmark or index. For an investor, risk is limited each day to the current market value of capital invested because leveraged ETFs benefit from the associated effects of daily rebalancing and compounding. Daily rebalancing takes into account the market movement of the benchmark on each day. Compounding occurs when the profits or losses that occur as a result of the rebalancing process are applied to increase investment exposure when the market moves in your favour, and reduce investment exposure when the market trends against your position.

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*At time of purchase

Key Uses and Attributes of Leveraged ETFs

• Free up capital
• Hedging tool
• Potential to generate 2X market returns in up markets (2x Daily Bull ETFs)
• Potential to generate 2X market returns in down markets (-2x Daily Bear ETFs)
• Tax efficient
• Registered account eligible

Horizons Exchange Traded Funds was the first ETF provider in Canada to offer Leveraged ETFs. We offer one of the largest families of Leveraged ETFs in the world.

Leveraged (Equities)

BetaPro S&P/TSX 60™ 2x Daily Bull ETF (HXU)
BetaPro S&P/TSX 60™ -2x Daily Bear ETF (HXD)
BetaPro S&P/TSX Capped Financials™ 2x Daily Bull ETF (HFU)
BetaPro S&P/TSX Capped Financials™ -2x Daily Bear ETF (HFD)
BetaPro S&P/TSX Capped Energy™ 2x Daily Bull ETF (HEU)
BetaPro S&P/TSX Capped Energy™ -2x Daily Bear ETF (HED)
BetaPro Canadian Gold Miners 2x Daily Bull ETF (HGU)
BetaPro Canadian Gold Miners -2x Daily Bear ETF (HGD)
BetaPro S&P 500® 2x Daily Bull ETF (HSU)
BetaPro S&P 500® -2x Daily Bear ETF (HSD)
BetaPro NASDAQ-100® 2x Daily Bull ETF (HQU)
BetaPro NASDAQ-100® -2x Daily Bear ETF (HQD)

Volatility

BetaPro S&P 500 VIX Short-Term Futures™ 2x Daily Bull ETF (HVU)

Leveraged (Commodities)

BetaPro Gold Bullion 2x Daily Bull ETF (HBU)
BetaPro Gold Bullion -2x Daily Bear ETF (HBD)
BetaPro Silver 2x Daily Bull ETF (HZU)
BetaPro Silver -2x Daily Bear ETF (HZD)
BetaPro Crude Oil 2x Daily Bull ETF (HOU)
BetaPro Crude Oil -2x Daily Bear ETF (HOD)
BetaPro Natural Gas 2x Daily Bull ETF (HNU)
BetaPro Natural Gas -2x Daily Bear ETF (HND)

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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.