TORONTO – March 20, 2019 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is assessing the potential impact of proposed legislative changes tabled by the Minister of Finance in the Federal Budget on March 19, 2019, on its family of exchange traded funds. Based on its preliminary assessment, Horizons ETFs has determined that the exchange traded funds listed on the table below (the “ETFs”) could be impacted by the changes after their 2019 taxation years.

The proposed legislative changes, which would not take effect with respect to the ETFs until after their respective 2019 taxation years (ending either December 15 or December 31), deal with how certain investment funds are able to allocate income and capital gains to redeeming entities. If the ETFs were to continue to carry on operations after their 2019 taxation years in the same manner as they do currently, the proposed legislative changes could potentially result in taxable distributions to the unitholders of the ETFs in respect of periods after their 2019 taxation years.

Horizons ETFs does not anticipate any impact to the tax treatment of its ETFs for their 2019 taxation years. Horizons ETFs is assessing the potential tax impact on the ETFs after their 2019 taxation years with its legal and tax advisors, as well as other industry participants, and is actively pursuing alternatives to mitigate any potential future tax impact on the ETFs or their unitholders.

Horizons ETFs will provide an update following further assessment of the proposed legislative changes.

ETF Name Ticker
Horizons S&P/TSX 60™ Index ETF HXT
Horizons S&P 500® Index ETF HXS
Horizons S&P/TSX Capped Energy Index ETF HXE
Horizons S&P/TSX Capped Financials Index ETF HXF
Horizons Cdn Select Universe Bond ETF HBB
Horizons US 7-10 Year Treasury Bond ETF HTB
Horizons NASDAQ-100® Index ETF HXQ
Horizons EURO STOXX 50® Index ETF HXX
Horizons Cdn High Dividend Index ETF HXH
Horizons S&P 500 CAD Hedged Index ETF HSH
Horizons US 7-10 Year Treasury Bond CAD Hedged ETF HTH
Horizons Intl Developed Markets Equity Index ETF HXDM
Horizons Conservative TRI ETF Portfolio HCON
Horizons Balanced TRI ETF Portfolio HBAL
Horizons Equal Weight Canada REIT Index ETF HCRE
Horizons Laddered Canadian Preferred Share Index ETF HLPR
Horizons Equal Weight Canada Banks Index ETF HEWB
BetaPro S&P 500 VIX Short-Term Futures™ ETF HUV
Horizons Gold ETF HUG
Horizons Silver ETF HUZ
Horizons Crude Oil ETF HUC
Horizons Natural Gas ETF HUN
BetaPro Gold Bullion 2x Daily Bull ETF HBU
BetaPro Gold Bullion -2x Daily Bear ETF HBD
BetaPro Crude Oil 2x Daily Bull ETF HOU
BetaPro Crude Oil -2x Daily Bear ETF HOD
BetaPro Natural Gas 2x Daily Bull ETF HNU
BetaPro Natural Gas -2x Daily Bear ETF HND
BetaPro Silver 2x Daily Bull ETF HZU
BetaPro Silver -2x Daily Bear ETF HZD
BetaPro S&P/TSX 60™ 2x Daily Bull ETF HXU
BetaPro S&P/TSX 60™ -2x Daily Bear ETF HXD
BetaPro S&P/TSX Capped Financials™ 2x Daily Bull ETF HFU
BetaPro S&P/TSX Capped Financials™ -2x Daily Bear ETF HFD
BetaPro S&P/TSX Capped Energy™ 2x Daily Bull ETF HEU
BetaPro S&P/TSX Capped Energy™ -2x Daily Bear ETF HED
BetaPro Canadian Gold Miners 2x Daily Bull ETF HGU
BetaPro Canadian Gold Miners -2x Daily Bear ETF HGD
BetaPro S&P 500® 2x Daily Bull ETF HSU
BetaPro S&P 500® -2x Daily Bear ETF HSD
BetaPro NASDAQ-100® 2x Daily Bull ETF HQU
BetaPro NASDAQ-100® -2x Daily Bear ETF HQD
BetaPro S&P/TSX 60™ Daily Inverse ETF HIX
BetaPro S&P 500® Daily Inverse ETF HIU
Horizons Morningstar Hedge Fund Index ETF HHF
 

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 more than $10 billion of assets under management and 86 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.

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

For media inquiries:
Contact Mark Noble
Senior Vice President, ETF Strategy
Horizons ETFs Management (Canada) Inc.
(416) 640-8254
mnoble@horizonsetfs.com

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Horizons ETFs Rebalances the Horizons Marijuana Life Sciences Index ETF

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.