Ticker Weighting Method Risk Rating1 Risk Ratings
as at Date
Annual
Management Fee2

Fixed Income
HAB Actively Managed Low 1/31/2019 0.50%
HAD Actively Managed Low 1/31/2019 0.42%
HAF Actively Managed Low 1/31/2019 0.45%
HEMB Actively Managed Low to Medium 1/31/2019 0.55%
HFP Actively Managed Low to Medium 1/31/2019 0.55%
HFR Actively Managed Low 1/31/2019 0.40%
HMP Actively Managed Low 1/31/2019 0.29%
HPR Actively Managed Low to Medium 1/31/2019 0.55%
HUF Actively Managed Low 1/31/2019 0.40%
HYI Actively Managed Low to Medium 1/31/2019 0.60%
HSL Actively Managed Low 1/31/2019 0.75%

Equity Income
HAJ Actively Managed Medium 1/31/2019 0.65%3
HAL Actively Managed Low to Medium 1/31/2019 0.55%4
HAU Actively Managed Medium 1/31/2019 0.55%4
HAZ Actively Managed Low to Medium 1/31/2019 0.65%3

Covered Call
HEX Equal Weighted Medium 2/28/2019 0.65%
HEA Equal Weighted Low to Medium 2/28/2019 0.65%
HEJ Equal Weighted Medium 2/28/2019 0.65%
HEE Equal Weighted Medium to High 2/28/2019 0.65%
HEF Equal Weighted Medium 2/28/2019 0.65%
HEP Equal Weighted High 3/31/2018 0.65%
HGY Single Commodity Medium 12/31/2018 0.60%
HNY Single Commodity High 12/31/2018 0.85%

Currency
HARC Actively Managed Low to Medium 3/29/2019 0.95%

Strategic
HAC Actively Managed Low to Medium 3/29/2019 0.75%5
HGM Actively Managed Low to Medium 1/31/2019 0.50%6
HRA Actively Managed Low to Medium 1/31/2019 0.65%7
MIND Actively Managed Low to Medium 1/31/2019 0.55%
HBAL Actively Managed Medium 5/31/2019 0.00%
HCON Actively Managed Low to Medium 5/31/2019 0.00%

HBAL and HCON are subject to the fees of their underlying ETFs. Horizons ETFs currently anticipates that the management expense ratio of HCON and HBAL will be approximately 0.15% and 0.16% and will not exceed 0.17% and 0.18%, respectively, while the aggregate trading expense ratio of the portfolio of Horizons TRI ETFs held by HCON and HBAL will be approximately 0.18 and 0.20%, respectively. As trading expense ratios include expenses outside of the Manager’s control, the trading expense ratio of HCON and HBAL is subject to change at any time.


Total Return Index - Equity
HXT Market Cap Weighted Low to Medium 6/30/2019 0.03%8
HXH Market Cap Weighted Low to Medium 6/30/2019 0.10%
HXE Market Cap Weighted Medium to High 6/30/2019 0.25%
HXF Market Cap Weighted Medium 6/30/2019 0.25%
HXS Market Cap Weighted Medium 6/30/2019 0.10%
HSH Market Cap Weighted Medium 6/30/2019 0.10%
HXQ Market Cap Weighted Medium 6/30/2019 0.25%
HXDM Market Cap Weighted Medium 6/30/2019 0.20%
HXX Market Cap Weighted Medium to High 6/30/2019 0.17%
HEWB Equal Weighted Medium 6/30/2019 0.45%

Total Return Index - Fixed Income
HBB Universe Proportionately Weighted Low 6/30/2019 0.09%
HLPR Equal Weighted Low to Medium 6/30/2019 0.40%
HTB Universe Proportionately Weighted Medium 6/30/2019 0.15%
HTH Universe Proportionately Weighted Low 6/30/2019 0.15%

Total Return Index - Real Estate
HCRE Equal Weighted Low to Medium 6/30/2019 0.50%

Thematic Equity
HMJR Market Cap Weighted High* 12/31/2018 0.85%
HMMJ Market Cap Weighted High* 2/28/2019 0.75%
HMUS Market Cap Weighted High** 3/30/2019 0.85%
ETHI Market Cap Weighted Medium 2/28/2019 0.45%
RBOT Equal Weighted Medium to High 2/28/2019 0.45%
FOUR Equal Weighted Medium 2/28/2019 0.45%
BKCH Market Cap Weighted Medium to High 2/28/2019 0.45%
HII Equal Weighted Medium 2/28/2019 0.65%
HOG Equal Weighted Medium 2/28/2019 0.75%
HURA Market Cap Weighted High 4/30/2019 0.55%

Factor-Based Equity
HEW Equal Weighted Medium 1/31/2019 0.50%9
HCN Equal Weighted Medium 12/31/2018 0.70%
INOC Equal Weighted Low to Medium 2/28/2019 0.50%

Currency
CAN Passive Low to Medium 3/31/2018 0.45%
DLR Passive Low to Medium 3/31/2018 0.45%

Commodity
HUC Single Commodity High 6/30/2019 0.75%
HUN Single Commodity High 6/30/2019 0.75%
HUG Single Commodity Medium to High 6/30/2019 0.65%
HUZ Single Commodity High 6/30/2019 0.65%

Alternative Strategy
HHF Actively Managed Low to Medium 3/3/2019 0.95%

BetaPro - Single Inverse Equity
HIX Single Index (Inverse) Medium 6/30/2019 1.15%
HIU Single Index (Inverse) Medium 6/30/2019 1.15%
 

For all other BetaPro ETFs, the Risk Rating is High.

* Due to how new the Marijuana sector is, no appropriate benchmark index or proxy spans the required 10 years for the calculation. To be conservative, we defaulted the risk ratings to the highest possible category given the highly volatile nature of this sector.
** There are risks associated with this product. HMUS is expected to invest in the Marijuana industry in certain U.S. states that have legalized marijuana for therapeutic or adult-use, which is currently illegal under U.S. federal law. HMUS will passively invest in companies involved in the marijuana industry in the U.S. where local state law regulates and permits such activities, as well as in companies involved in the Canadian legal Marijuana industry. HMUS will not be directly engaged in the manufacture, importation, possession, use, sale or distribution of marijuana in either Canada or the U.S. Please read the full risk disclosure in the prospectus before investing.
1Risk ratings are determined based on the historical volatility of a Horizons ETF as measured by the standard deviation of its performance against its mean. The risk categorization of a Horizons ETF may change over time and historical volatility is not indicative of future volatility. Generally, a risk rating is assigned to a Horizons ETF based on the historical rolling 10-year standard deviation of its return, the return of its underlying index, or of an applicable proxy index. In cases where the Manager believes that this methodology produces a result that is not indicative of the ETF’s future volatility, the risk rating may be determined by the ETF’s category. The risk rating of each Horizons ETF is reviewed at least annually, as well as when there is a material change in the ETF’s investment objective or investment strategies. Risk ratings are not intended for use as a substitute for undertaking a proper and complete suitability or financial assessment by an investment advisor.
2Plus applicable sales tax. Each ETF may be subject to additional operating expenses as outlined in its applicable prospectus.
3Annual management fee reduced from 0.80% to 0.65%, effective December 1, 2018.
4Annual management fee reduced from 0.70% to 0.55%, effective December 1, 2018.
5Horizons HAC pays to the Manager a Performance Fee, if any, equal to 20% of the amount by which the performance of Horizons HAC, at any date on which the fee is payable, (i) exceeds the High Water Mark and (ii) is greater than an annualized return of five percent (5%).
6Annual management fee reduced from 0.85% to 0.50%, effective December 1, 2018. 7 Annual management fee reduced from 0.85% to 0.65%, effective December 1, 2018.
8Annual management fee of 0.07% rebated by 4 bps (0.04%) to an effective management fee of 3 bps, or 0.03%, effective October 1, 2015, until at least September 30, 2019.
9AUM $0 to $30 million: 0.50% ; AUM over $30 million: 0.40%.

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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 (the “BetaPro Products”). The BetaPro Products are alternative mutual funds within the meaning of National Instrument 81-102 Investment Funds, and are permitted to use strategies generally prohibited by conventional mutual funds: the ability to invest more than 10% of their net asset value in securities of a single issuer, to employ leverage, and engage in short selling to a greater extent than is permitted in conventional mutual funds. While these strategies will only be used in accordance with the investment objectives and strategies of the BetaPro Products, during certain market conditions they may accelerate the risk that an investment in units of a BetaPro Product decreases in value. The BetaPro Products consist of our 2x Daily Bull and 2x Daily Bear ETFs (“2x Daily ETFs”), Inverse ETFs (“Inverse ETFs”) and our BetaPro S&P 500 VIX Short-Term Futures™ ETF (the “VIX ETF”). Included in the 2x Daily ETFs and the Inverse ETFs are the BetaPro Marijuana Companies 2x Daily Bull ETF (“HMJU”) and BetaPro Marijuana Companies Inverse ETF (“HMJI”), which track the North American MOC Marijuana Index (NTR) and North American MOC Marijuana Index (TR), respectively. 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, among other risks, which 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 futures index or benchmark (the “Target”) for a single day. Each Inverse ETF seeks a return that is –100% of the performance of its 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, particularly in the case of the 2x Daily ETFs, possibly direction from the performance of their respective Target(s) for the same period. Hedging costs charged to BetaPro Products reduce the value of the forward price payable to that ETF. Due to the high cost of borrowing the securities of marijuana companies in particular, the hedging costs charged to HMJI are expected to be material and are expected to materially reduce the returns of HMJI to unitholders and materially impair the ability of HMJI to meet its investment objectives. Currently, the manager expects the hedging costs to be charged to HMJI and borne by unitholders will be between 15.00% and 35.00% per annum of the aggregate notional exposure of HMJI’s forward documents. The hedging costs may increase above this range. The manager will publish, on its website, the updated monthly fixed hedging cost for HMJI for the upcoming month as negotiated with the counterparty to the forward documents, based on the then current market conditions. The VIX ETF, which is a 1x 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 intended as a 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 ETF’s 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 in BetaPro Products and their performance at least as frequently as daily to ensure such investment(s) 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.