TORONTO – November 20, 2015 - Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. (collectively “Horizons ETFs”) are pleased to announce the distribution amounts per unit (the “Distributions”) for the Horizons ETFs suite of covered call exchange traded funds (the “ETFs”), for the period ending November 30, 2015, as indicated in the table below.

The ex-dividend date for the Distributions is anticipated to be November 26, 2015, for all unitholders of record on November 30, 2015. The Distributions will be paid in cash, or if the unitholder has enrolled in the respective ETF’s dividend reinvestment plan (DRIP), reinvested in additional units of the applicable ETF, on or about December 10, 2015.

Ticker Symbol Current Month Distribution Rate NAV Change from Prior Month(1) Current Month Yield(2) Prior Month Yield(3) Absolute Change in Yield from Prior Month(4)
HEX 0.04496 -0.0132 0.0867 0.0788 0.0079
HEX.A 0.04096 -0.0138 0.0787 0.0708 0.0079
HEE 0.02336 -0.0485 0.0955 0.0827 0.0128
HEE.A 0.02154 -0.0491 0.0875 0.0747 0.0128
HEP 0.03044 -0.0964 0.0981 0.0691 0.0290
HEP.A 0.02783 -0.0969 0.0901 0.0611 0.0290
HEF 0.06221 0.0195 0.0883 0.0795 0.0088
HEF.A 0.05680 0.0189 0.0803 0.0715 0.0088
HEJ 0.05018 -0.0167 0.0902 0.0857 0.0045
HEJ.A 0.04571 -0.0173 0.0822 0.0776 0.0046
HEA.U 0.05462 0.0205 0.0606 0.0610 -0.0004
HEA 0.05462 0.0327 0.0606 0.0610 -0.0004
HEA.V 0.04742 0.0199 0.0526 0.0530 -0.0004
HEA.A 0.04742 0.0321 0.0526 0.0530 -0.0004
HGY 0.01698 -0.0710 0.0407 0.0404 0.0003
HGY.A 0.01384 -0.0716 0.0332 0.0328 0.0004
HNY 0.03241 -0.1290 0.1093 0.0723 0.0370
HNY.A 0.02996 -0.1295 0.1010 0.0640 0.0370
 

(1) Based on the period October 21, 2015, to November 19, 2015, where the prior month’s net asset value per unit is adjusted to include the prior month’s distribution.
(2) Annualized and based on the applicable November 19, 2015, net asset value per unit which is available at www.HorizonsETFs.com.
(3) Annualized and based on the applicable October 21, 2015, net asset value per unit which is available at www.HorizonsETFs.com.
(4) The absolute change of the prior month’s previously announced annualized distribution yield to the current month’s annualized distribution yield.
(5) Distributions for Horizons Enhanced Income US Equity (USD) ETF are declared and paid in U.S. dollars, including those listed under the Canadian dollar traded tickers HEA and HEA.A. The approximate Canadian dollar equivalent distribution rates for HEA and HEA.A are $0.07262 per unit and $0.06305 per unit, respectively. For unitholders who hold Canadian dollar traded HEA and HEA.A, distribution payments will typically be converted to Canadian dollars by the unitholder’s account holder.

Each ETF does not have a fixed distribution but pays distributions monthly. Distribution rates are generally based on the average current volatility of the securities held by the ETF, along with any dividend income received, less expenses payable by the ETF. The amount of monthly cash distributions are expected to fluctuate from month to month and there can be no assurance that an ETF will make any distributions in any particular month or months. Monthly distributions will be paid in cash, unless the investor has chosen to participate in the ETF’s reinvestment plan

Download PDF

Share This Article

Next article
 

Horizons Announces September 2015 Distributions for its Covered Call ETFs

This website uses cookies to ensure we give you the best experience. By continuing to browse the site, you are agreeing to our use of cookies. Click here to read our privacy policy.

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.