Reverting to the Mean

March 22, 2017
Reverting to the Mean 

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

A crucial foundation for understanding how option volatility works is the concept of ‘mean reversion’. For a period, stocks can go up and stay up, and they can conversely go down and stay down. But option pricing will generally have trouble staying high or low for an extended length of time.

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Calgary Fund Manager Beating World’s Largest Hedge Fund Titans

March 20, 2017
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BY: MARK NOBLE, SENIOR VICE-PRESIDENT AND HEAD OF SALES STRATEGY, HORIZONS ETFS

Calgary is well-known as a leader for oil and gas investing, but it’s one of the city’s independent asset managers that is starting to turn heads on both sides of the Canada/U.S. border. The global hedge fund industry has received a bad rap in recent years due to its underperformance compared to a raging equity market.

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Understanding Volatility Exchange Traded Products

March 14, 2017
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BY: HANS ALBRECHT, CIM®, FCSI, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

I’m often asked about long volatility exchange traded products (ETPs) – how they work and how they make or lose money. This is understandable, since there is often confusion as to what drives their underlying performance. It’s important to understand that the performance of these products comes from movement in an underlying index called the S&P 500 VIX Short-Term Futures™ Index.

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In Defense of the VIX

March 07, 2017
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BY: HANS ALBRECHT, CIM®, FCSI, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

I’ve been asked on many occasions whether or not I can truly chart the VIX (also known as ‘the fear index’). Of course I can; the VIX takes a fairly good rolling snapshot of investor sentiment and behaviour. As we know, behaviour tends to repeat itself over time.

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Say Goodbye To T1135s!

February 28, 2017
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BY: STEVE HAWKINS, PRESIDENT AND CO-CEO, HORIZONS ETFS

The potential benefits of foreign equity investing are numerous, including the ability to access world-leading companies and create greater diversity within an equity portfolio.

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4% Solutions: Enhancing Your Yield, Reducing Your Risk

January 20, 2017
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BY: STEVE HAWKINS, PRESIDENT AND CO-CEO, HORIZONS ETFS

The recent sell-off in the bond market has created, in our view, a unique opportunity for investors to actually increase the yield of their fixed income portfolios – while also potentially reducing overall risk and their interest rate sensitivity.

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ETFs in the Era of Fiscal Expansion

December 22, 2016
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BY: STEVE HAWKINS, PRESIDENT AND CO-CEO, HORIZONS ETFS

Canadian ETF investors need to be prepared for what could be a seismic shift in the world of investing. It is being spurred by the anticipation of “fiscal expansion”, which is the new form of stimulus replacing the era of monetary policy and quantitative easing that has dominated markets for the last eight years.

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Don’t Skate to Where Gold Was — Skate to Where It’s Going to Be

December 19, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE-PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

Around the 2015 holiday season, investors were quickly taking notice of the absurdity of deeper cuts into negative rates by a number of prominent central banks. Savers (who were finding themselves in a world under siege) brought about a financial populace pushback.

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Post-Election Lessons in Volatility

November 17, 2016
Post-Election Lessons in Volatility 

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

Early in November, I suggested that investors consider adding BetaPro S&P 500 VIX Short-Term Futures™ Inverse ETF (HVI) to their portfolios. It was for a good reason: option pricing, and importantly downside put skew, was very high. In fact, it was much higher than the actual market movement indicated was ‘fair’. So, as I said to Bloomberg, “fade the fear, markets will digest it.”

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Donald Trump is President-Elect. What Now?

November 11, 2016
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BY: MARK NOBLE, SENIOR VICE-PRESIDENT AND HEAD OF SALES STRATEGY, HORIZONS ETFS

Similar to the Brexit vote back in June, the surprise election of Donald Trump as the President of the United States on November 8th put global stock markets into a tailspin overnight. The following day, the U.S. stock market bounced back to finish the day on a positive note.

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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 AlphaPro Management Inc. and 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.