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Overview

Designed for investors who are more concerned about protection from downside risk than capital appreciation, this model portfolio has a strong weighting to less risky income producing investments such as bonds.

The Conservative Portfolio’s asset allocation is comprised of ETFs that provide exposure to equities and bonds. Investors could reasonably expect this portfolio to provide some modest upside growth potential in rising stock markets, while offering downside protection in declining stock markets.

Risk Rating

PŮR Investing Inc.’s proprietary research assigns a risk number of "10" to this model portfolio. This implies that in any twelve month period their expected maximum negative total return is -10%, with a projected statistical probability of 99%. It also suggests that over an investing time horizon of approximately 10 years, there would be a 95% statistical probability that the lowest expected total return performance of the portfolio would be the return of all capital plus inflation. PUR cannot project the maximum upside total return potential of the portfolio.

Performance

(as at December 31, 2018)

  1 Month 3 Months 6 Months Year to Date 1 Year 3 Year Since Inception
Portfolio -1.81% -3.60% -3.65% -2.21% -2.21% 3.10% 5.18%
 

† Inception date is November 30, 2012

Weighted MER: 0.35%2
12-Month Trailing Yield: 1.84%
(as at December 31, 2018)

Portfolio Allocations

Portfolio Weights as at December 31, 2018*

 Fixed Income: 72.17%  Equities: 27.83%
Name Weight
 HAB Horizons Active Corporate Bond ETF 14.3%
 HBB Horizons CDN Select Universe Bond ETF 13.6%
 HAD Horizons Active Cdn Bond ETF 13.7%
 HFR Horizons Active Floating Rate Bond ETF 14.7%
 HYI Horizons Active High Yield Bond ETF 5.3%
 HMP Horizons Active Cdn Municipal Bond ETF 5.5%
 HAF Horizons Active Global Fixed Income ETF 5.2%
 HXT Horizons S&P/TSX 60™ Index ETF 12.8%
 HXDM Horizons Intl Developed Markets Equity Index ETF 8.6%
 HXS Horizons S&P 500® Index ETF 6.4%
 

Portfolio Allocation is dynamically reallocated on a quarterly basis by the investment manager utilizing research by PŮR Investing Inc. The quarterly reallocation is an integral aspect of this model portfolio.

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1 Should you wish to replicate the Aggressive Portfolio, multiple trades would be required to buy each individual ETF at the outset and the quarterly rebalances. The ETFs in the portfolio were selected based on a minimum portfolio of $100,000.

2 The indicated MER is the weighted average management fee of all the ETFs in the model portfolio exclusive of HST. The model portfolio is hypothetical and its performance does not contemplate any direct fees, expenses, commissions, taxes or optional charges.

 

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The Horizons Model Portfolios (the "Model Portfolios"), provided by Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”), and based on data research by PŮR Investing Inc., are hypothetical and designed to illustrate how Horizons Exchange Traded Products could be combined to create solutions for different needs. The Model Portfolios have been categorized in general terms and not for specific investors. The Model Portfolios and the information related to them do not constitute, and are not to be construed as, investment advice. Any investment or allocation decisions should be made with the advice of a qualified investment professional with respect to individual circumstances, preferences, risk tolerance, and after reading the relevant prospectuses. and Horizons shall not have any liability, contingent or otherwise, to any person or entity for the quality, accuracy, timeliness and/or completeness of information in, or related to, the Model Portfolios, or for delays, omissions or interruptions in the delivery of such information. Horizons ETFs makes no warranty, express or implied, as to the results to be obtained by any person or entity in connection with any use of the Model Portfolios and any data related thereto, or any components thereof, and is not liable for any action or decision made by you in reliance on this Website or the information contained therein. Horizons is not an advisor as to legal, taxation, accounting, regulatory or financial matters in any jurisdiction, and is not providing any advice as to any such matter. 

The indicated rates of return for the Model Portfolio in the Performance Table are the historical annual compounded total returns of the hypothetical portfolio including changes in per unit value and reinvestment of all dividends and distributions and do not take into account sales, transaction, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns.

PŮR Investing Inc. ("PŮR") is a software development firm specializing in innovative strategies for investors, advisors and pension plans. For more information on the firm please visit www.purinvesting.com.

Horizons ETFs is a Member of Mirae Asset Global Investments. 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 include our BetaPro Products which consist of our 2x Daily Bull and 2x Daily Bear ETFs ("2x Daily ETFs"), Inverse ETFs ("Inverse ETFs") and our VIX ETF (defined below). The 2x Daily ETFs and certain other BetaPro Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These BetaPro 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 Inverse ETF seeks a return that is -100% 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, for the 2x Daily ETFs, possibly direction from the performance of their respective Target(s) for the same period. The BetaPro Product whose Target is the S&P 500 VIX Short-Term Futures Index™ (the "VIX ETF"), which is a (1x) VIX ETF, as described in the prospectus, is a speculative investment tool that is not a conventional investment. The VIX ETF’s Target is highly volatile. As a result, the VIX ETF is not generally viewed as stand-alone long-term investment. Historically, the VIX ETF’s 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 ETF nor its Target is 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.