TORONTO – November, 4, 2019 – In its first year, Horizons Global Sustainability Leaders Index ETF (“ETHI”) attained a 16.95% total return, all while maintaining one of Canada’s most ambitious environmental and socially responsible portfolios of global, large-cap companies. Additionally, effective November 1, 2019, ETHI’s management fee has been reduced from 0.65% to 0.45%.

ETHI first started trading on November 1, 2018, and was Horizons ETFs’ first socially responsible investing (SRI) ETF. ETHI seeks to replicate, to the extent possible, the performance of the Nasdaq Future Global Sustainability Leaders Index (“the Index”), net of expenses. ETHI gives investors the opportunity to access a genuinely lower carbon footprint and SRI-screened passive global investment portfolio.

Socially responsible investing is becoming increasingly more popular with investors as they seek to align their investment dollars with companies that are aligned with their social values essentially putting their money where their mouths are,” said Steve Hawkins, President and CEO of Horizons ETFs. “A big criticism and myth of socially responsible investing is that investors would have to sacrifice returns if they invested in a portfolio that lets them feel good about how their money is used. ETHI clearly demonstrates that investors can both generate attractive returns and feel good about how they invest.

ETHI Performance

For the one-year and year-to-date periods ending October 31, 2019, ETHI returned 16.95% and 23.14%, respectively, both on a total return basis.

This is, in part, because the sectors that have done well from a performance basis over the last five years—predominantly technology stocks—have a lower carbon footprint. ETHI’s index tends to overweight the technology sectors relative to their weights in broader indices.

  1 Mo 3 Mo 6 Mo YTD 1 Yr SIR
Horizons Global Sustainability Leaders Index ETF 4.37% 3.71% 6.28% 23.14% 16.95% 16.95%
 

Source: Bloomberg, as at October 31, 2019

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 Horizons Exchange Traded Products or returns on investment in the Horizons Exchange Traded Products.

The economic costs of climate change will be drastic—companies that aren’t prepared or working toward a better tomorrow could be a significant risk for investors to own,” said Mr. Hawkins. “ETHI’s portfolio of global, large-cap climate change leaders are the best situated to weather the storm, so to speak, while seeking to deliver strong returns and a better future.

How it Works

ETHI provides exposure to 100 of the world's largest companies (by market capitalization) that have demonstrated a core commitment to environmentally sustainable business practices. Using a rigorous methodology, the Index screens for qualifying equities based on the following factors:

1. Companies must not be engaged in activities considered inconsistent with SRI principles, including fossil fuel production, armaments, tobacco, gambling, animal cruelty and more.
2. Companies must either have a carbon impact at least 60% lower than their industry's average or be engaged in activities that can help reduce carbon use by other industries.
3. Companies must have at least one woman on their Board of Directors.
4. Companies are selected from developed markets and must meet market cap and liquidity requirements.

We launched ETHI because we saw a gap in the Canadian market for a truly socially responsible ETF,” said Mr. Hawkins. “ETHI’s index goes further than traditional environmental, social governance (ESG) funds in Canada by taking a fully prohibitive stance against holding any fossil fuel producers and major emitters. In addition, the index’s other screening rigors mean that socially-conscious investors do not need to compromise on their values when choosing a strong portfolio.

About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has approximately $10 billion of assets under management and 91 ETFs listed on major Canadian stock exchanges.

For investor inquiries:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
info@horizonsetfs.com

For media inquiries:
Contact Jonathan McGuire
External Communications Manager
Horizons ETFs Management (Canada) Inc.
(416) 640-2956
jmcguire@horizonsetfs.com

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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.