• Total Return Index Advantage: HXCN is part of the Horizons Total Return Index family of ETFs (“Horizons TRI ETFs”) . HXCN uses one or more total return swap contracts to seek to replicate the performance of the Index. This structure typically reduces tracking error associated with physically replicating an index and increases tax efficiency
• Competitive Management Fee: At 0.05%, HXCN is tied with five other ETFs offering the second-lowest management fee of 46 Canadian-listed ETFs that provide exposure to the Canadian equity market*
• Tax Efficiency: HXCN is not expected to make taxable distributions
• Automatic Reinvestment: The reinvestment of Index constituent distributions are reflected in HXCN’s net asset value (“NAV”) on their ex-date – which can result in more efficient compounding than ETFs that compound only quarterly or monthly
• Low Tracking Error: The tracking error of HXCN to its underlying Index is expected to only be equal to the management fee plus HST
*Compared to other Canadian-listed ETFs in the “Canadian Equity” Morningstar category, HXCN tied with five other ETFs with the second-lowest management fee among a total of 46 ETFs, as at February 6, 2020.